Italian Businessman Charged in Vatican Real Estate Fraud
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An Italian businessman who once dated actress Anne Hathaway was arrested yesterday 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.
Prosecutors allege that Raffaello Follieri, 29, improperly spent hundreds of thousands of dollars obtained from investors 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 Ms. Hathaway had until recently dated Mr. Follieri.
The complaint filed in U.S. District Court in Manhattan alleges that Mr. 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 America and redevelop them.
The partner, a private equity firm in California, was not identified in court papers. However, a division of supermarket billionaire Ron Burkle’s Yucaipa Cos. has settled lawsuits accusing Mr. Follieri of misappropriating more than $1 million to support a fancy lifestyle.
Mr. Follieri was charged with a dozen counts of wire fraud conspiracy, wire fraud, and money laundering.
His lawyer, Flora Edwards, told the Associated Press, “We’re going to move forward and hope for a speedy resolution to this matter.” Otherwise, she declined to comment.
According to the FBI, Mr. Follieri claimed the Vatican had formally appointed him to manage its financial affairs and that he had met with the pope in person in Rome.
Prosecutors allege that Mr. Follieri embellished his slim connections to the Vatican to make it seem he was so powerful that the Catholic church would sell him property at a deep discount.
Prosecutors allege that Mr. Follieri’s scheme unraveled when the principal investor sought an audit of the partnership and demanded an explanation for expenditures unrelated to administrative overhead or business expenses.
The complaint alleges that Mr. Follieri spent hundreds of thousands of dollars from May 2005 through February 2007 for personal trips and vacations; an apartment that overlooked Rockefeller Center and Central Park; and medical expenses for himself, his parents, and his girlfriend.