By Sarah Jarvis

Law360 (April 6, 2020, 8:55 PM EDT ) The government has pushed back on attorney Michael Avenatti's request for temporary release from custody, saying despite the statements in his proposal regarding worsening conditions related to the coronavirus at his New York holding facility, he has ignored the minimum terms under which a California federal court would grant his bid.

Avenatti — who is being held at the Metropolitan Correctional Center in Manhattan pending his upcoming California embezzlement trial — filed a deficient proposed order, California prosecutors said in a court filing Sunday. His Saturday proposal did not include any mechanism to enforce limitations on his ability to make fund or asset transfers, among other things, prosecutors said.

"Defendant and his counsel continue to demonstrate that they are either unable or unwilling to follow this court's directions, thereby wasting valuable judicial and government resources during a time when such resources are already stretched thin," California prosecutors said.

Prosecutors also took issue with Avenatti's proposed surety and custodian, saying pretrial services has not had a chance to interview them or prepare a required report on their fitness to serve as custodians. The government added in a footnote that it has "preliminary concerns" about proposed custodian Hubert Bromma's suitability for custodianship, noting that he appears to have authored a book titled "How to Invest in Offshore Real Estate and Pay Little or No Taxes."

Avenatti said in his proposal that his temporary release is necessary to avoid "disastrous health consequences" related to the coronavirus amid allegedly deteriorating conditions at New York City's MCC. Avenatti said he is at risk because of a bout with pneumonia late last year.

His most recent application also cited several other cases in which the defendants were granted release because of the virus.

Counsel for Avenatti and a representative of the Central District of California declined to comment Monday.

Noting the changing nature of the COVID-19 pandemic in New York City, California federal Judge James V. Selna last month invited Avenatti to request that the court reconsider its decision denying his bid for release.

Judge Selna's minute order indicating he may reconsider releasing Avenatti occurred after the attorney filed an ex parte application seeking to push back his trial — which is now scheduled for Aug. 18 — saying there is a "mountain of discovery" and that he needs more time to prepare his case. Avenatti also cited court closures related to the coronavirus as a factor.

In February, a New York jury found Avenatti guilty of extorting Nike Inc. He was arrested in the California case in April 2019 and charged with embezzling millions from five separate clients, tax evasion and obstruction, bank fraud and bankruptcy fraud.

He was freed on bail, but in January he was arrested at a California State Bar hearing when Judge Selna determined Avenatti may have been violating the terms of his release. He was then transferred to New York.

The embattled attorney is also facing a trial in New York on allegations he stole hundreds of thousands of dollars from former client Stormy Daniels, the adult film actress who said she had an affair with now-President Donald Trump.

The government is represented by Julian L. André and Brett A. Sagel of the U.S. Attorney's Office for the Central District of California.

Avenatti is represented by H. Dean Steward.

The case is U.S. v. Avenatti, case number 8:19-cr-00061, in the U.S. District Court for the Central District of California.

--Additional reporting by Craig Clough. Editing by Jack Karp.

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