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UPDATE: Anne Hathaway's Ex-Boyfriend Arrested, Faces Life in Prison
Tuesday June 24, 2008

Anne Hathaway and Raffaello Follieri
Anne Hathaway and Raffaello Follieri attend the Miss Sixty Fall 2008 Dinner Party on February 3, 2008 in New York City.
Larry Busacca/WireImage.com

Anne Hathaway's ex-boyfriend, Italian businessman Raffaello Follieri, could face life in prison stemming from being arrested on charges of wire fraud and money laundering.

According to the United States Attorney's Office, Follieri, 29, misappropriated "hundreds of thousands of dollars in investor money to live a luxurious lifestyle, including expensive restaurants and clothes; dog walking services; an opulent apartment in Manhattan that leased for approximately $37,000 per month; medical expenses for his girlfriend at the time and his parents, including a 'house call' by Follieri's physician, which cost $30,000."

Prosecutors also charge he claimed the Vatican formally appointed him to manage its financial affairs, and that he met with the Pope in person while in Italy — but "in reality, [his] connections consisted of an adminstrative employee at the Vatican who was paid by Follieri."

He's been charged with six counts of wire fraud, five counts of money laundering and one count of conspiracy to commit wire fraud. The wire fraud charges alone could result in 120 years in prison and a $1.5 million charge.

The Daily Mail of London recently reported that Hathaway, 25, broke it off with Follieri because she feared that his recent legal woes could hurt her career.

An additional source confirmed the split to Usmagazine.com: "Yes, they're taking a break. All the shady stuff was too much."

Follieri is also under investigation by the New York State Attorney General's office for failing to file tax-disclosure forms for his charity, the Follieri Foundation.

He was arrested in April for allegedly writing a $215,000 bad check.

During an appearance on The View that aired last Thursday, Hathaway admitted she wasn't feeling her "girlish, bubbly" self.

She told Joy Behar, "I'm kind of somber today."

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