Hathaway's ex-lover a liar and a con man, court told

Source: Agencies  |   2008-6-26  |     NEWSPAPER EDITION

AN Italian businessman who once dated American actress Anne Hathaway has been arrested on charges he posed as a representative of the Vatican to fleece wealthy investors in a real estate company that sought to buy and redevelop Roman Catholic Church property.

Bail was set at US$21 million for Raffaello Follieri. Federal prosecutors said they have "overwhelming" evidence that he improperly spent up to US$6 million from investors, much of it on a lavish lifestyle, including privately chartered jet travel with his girlfriend and others, expensive meals and clothing and a posh Manhattan apartment.

The girlfriend was not identified but it has been widely reported that Hathaway, star of films including "Get Smart," "The Devil Wears Prada" and "The Princess Diaries," had until recently dated Follieri, 29.

An angry Follieri repeatedly interrupted his lawyer at a court appearance to tell her what to say. He shook his head at times and, as a prosecutor accused him of owing various debts, called out: "We paid that."

Prosecutor Reed Michael Brodsky said Follieri, of Foggia, Italy, boasted of tight Vatican connections to entice investors to give millions of dollars so he could "live the lifestyle of a multimillionaire." He said Follieri had duped one investor as recently as last month.

"In short, your honor, he is a con man, and he was able to defraud a lot of people out of a lot of money over a long period of time," Brodsky told Magistrate Judge Henry B. Pitman. "The evidence in this case is overwhelming because he left a trail of evidence."

Brodsky had asked Pitman to deny bail, saying Follieri had the money, the connections and the incentive to flee charges that could send him to prison for up to nine years if he is convicted. He said Follieri lost between US$2.5 million and US$6 million of investor money.

Pitman said Follieri must secure bail with US$16 million in cash or property and must endure home detention, except for legal meetings, medical treatment or religious services.

After his court appearance, Follieri, who had been fighting a sinus infection, had "some sort of attack" and was taken to a hospital, said his publicist, Melanie Bonvicino. She said she did not have further information on his condition.

The complaint filed in United States District Court in Manhattan alleges that Follieri duped a partner into investing millions of dollars in a real estate scheme to buy properties at bargain prices from the Catholic church in the US and redevelop them.