Mississippi bank: Avenatti repaid loans in criminal case

March 26, 2019
1 of 2
FILE - In this July 27, 2018 file photo, attorney Michael Avenatti replies to questions by reporters during a news conference in front of the U.S. Federal Courthouse in Los Angeles. U.S. prosecutors announced Monday, March 25, 2019, they have charged Avenatti with extortion and bank and wire fraud. A spokesman for the U.S. attorney in Los Angeles said Avenatti was arrested Monday in New York. (AP Photo/Richard Vogel, File)

BILOXI, Miss. (AP) — A small Mississippi bank says it didn’t lose money on loans made to Michael Avenatti.

The lawyer, best known for representing porn actress Stormy Daniels, was arrested Monday on charges that he embezzled from a client and tried to extort millions from Nike.

In a separate Los Angeles case, Avenatti is charged with bank fraud and wire fraud. An IRS agent alleges Avenatti submitted fake income tax returns to The Peoples Bank of Biloxi, receiving three loans totaling $4.1 million to himself and his law firm. The agent says Avenatti claimed he earned millions and paid millions in taxes when he hadn’t submitted tax returns or paid taxes.

Peoples Bank Chairman and CEO Chevis Swetman says the loans were repaid. He didn’t say how Avenatti came to borrow from Peoples.