According to the lawsuit, the sordid deal would see Katz and Mrs Santo have sleep together six times a month for a year - taking the full payment to $1.44million (AUD$1.92million)
Mrs Santo, who stars in US comedy-drama Jane the Virgin, informed police in Hawaii of the offer in November 2015, claiming that she turned it down. Her police statement has now emerged as part of Mr Cipriani's lawsuit against Katz's PR man Glenn Bunting, who he accuses of trashing his reputation.
Mr Cipriani is suing Bunting for reportedly causing irreparable harm to his reputation when killing a story that he gave to the New York Post newspaper.
The news story was allegedly about the police report Mrs Santo had made about Katz.
Bunting has not comment on the lawsuit, while a lawyer for Katz - who is married to wife Renee and has two teenage children - said Mr Cipriani's claims were 'false, malicious and entirely without merit'.
Mr Cipriani claims Katz, who is worth an estimated $3.5billion (AUD$4.66billion) and owns the Edmonton Oilers hockey team, made repeated advances on his wife for months after the initial offer in Hawaii.
The lawsuit, which was first reported by Variety, includes Mrs Santo's 12-page statement to Hawaii Police which she filed after visiting the state for a photo shoot.
Mr Cipriani is banned from all casinos globally after pleading guilty to insurance fraud in 2006.
He was also a key informant in an investigation into a cocaine syndicate that police claimed was being operated out of The Star casino in Sydney, as well as other casinos in Las Vegas.
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