U.S. District Judge James Selna remanded Avenatti to federal custody at a hearing in Santa Ana, California, where prosecutors had charged him last March with 36 criminal counts, including defrauding clients out of millions of dollars.
Mr. Avenatti was arrested around 6 p.m. This time it was claimed that Avenatti stole $ 300,000 from his most famous client, Stormy Daniels.
Attorney Michael Avenatti on Tuesday night was arrested by IRS agents on allegations of violating the terms of his pre-trial release, according to a spokesperson for the US Attorney's Office in Los Angeles.
"The arrest of Mr. Avenatti this close to the trial has essentially thrown the trial into chaos", U.S. District Judge Paul G. Gardephe said.
"We understand that it has happened now", NY prosecutors said in the letter.
Avenatti initially tried to buy the vehicle in his own name, but then worked with his first ex-wife, Christine Avenatti Carlin, to put it in her name instead, prosecutors allege.
Prosecutors also said Avenatti's girlfriend took a vacation to an exclusive resort in Tuscany, Italy, as his guest, and that he has citizenship there, which they said raises questions over whether he's hidden assets there.
Avenatti rose to fame along with his former client, adult film star Stormy Daniels, who unsuccessfully filed several lawsuits against President Donald Trump. Eighteen months ago, the cheeky lawyer was a fixture on cable news programs and the subject of flattering pieces in Vanity Fair and New York Times magazine. He was asked about his skincare routine and Tom Ford suits during a photoshoot with Daniels by Annie Leibovitz.
Avenatti pleaded not guilty in that case and said he requested the money from Nike to compensate his client and to pay Avenatti to conduct an internal investigation of the sneaker company.
Exact details of his alleged bail violation remain scarce, but NY prosecutors were informed of the development by Los Angeles prosecutors.
Avenatti is facing federal charges on both coasts in connection with myriad fraud allegations, though he had been allowed to remain free on bond.