Anne Hathaway's ex-boyfriend arrested on fraud charges

NEW YORK (Reuters) - An Italian businessman who had been the long-time boyfriend of actress Anne Hathaway was arrested on Tuesday on charges of operating a fraudulent real estate scheme that he claimed was linked to the Vatican, U.S. authorities said.


Raffaello Follieri was charged with conspiracy, wire fraud and money laundering in a criminal complaint unsealed on Tuesday in U.S. District Court in Manhattan. He was expected to appear in court later in the day.


Follieri is accused of operating a scheme in which he led investors to believe that his New York firm, the Follieri Group LLC, was an investment company that helped the Catholic Church to divest its unwanted U.S. real estate properties.


Instead, Follieri and others used the investors' money for expensive clothes and restaurant meals, dog-walking services and other personal expenditures, according to the complaint.


The complaint said Follieri had made false representations that included claims that the Vatican formally appointed him to manage its financial affairs and that he met with the Pope in person when he visited Rome.


When asked for comment, Follieri's lawyer, Flora Edwards, said: "It's a little premature at this time. I am hopeful we will be able to resolve everything."


For four years, Follieri had dated Hathaway, who starred in "Get Smart," "The Devil Wears Prada" and other movies. Last week, Britain's The Daily Mail reported that the two had split.


The criminal complaint contends Follieri got millions of dollars in investment money from an unspecified private equity firm based on his misrepresentations about his ties to the Vatican.