Italian businessman Raffaello Follieri, the former boyfriend of actress Anne Hathaway, has been arrested on wire fraud conspiracy and money laundering charges, in connection with a scam he involved the Vatican’s name in.

The 29-year-old Italian investor appeared in federal court Tuesday in New York on a dozen counts of wire fraud conspiracy and money laundering.

The unlawful business he has been dwelling on consists in posing as a representative of the Vatican and claiming that he could obtain properties of the Catholic Church, worth millions of dollars, so he could live the lifestyle of a multimillionaire,” as prosecutor Reed Michael Brodsky accused him of, quoted by the Associated Press.

Brodsky added that Follieri had been active at fooling investors into the scheme as recently as last month.

The AP further reports that Follieri’s scheme was uncovered when the principal investor sought an audit of the partnership, according to prosecutors. He also asked for explanations regarding expenses that were not related to the business itself.

The Follieri Foundation, operated by the Italian businessman, has been under investigation at least since earlier this month, when the New York attorney general’s office made the announcement.

Anne Hathaway, 25, and Follieri had been in a relationship for some four years when they separated earlier this month. The actress’s publicist has previously emphasized that the star is not being investigated and is no longer a board member of the foundation.

Bail was set at $21 million for Follieri. Of this sum, $16 million would have to be paid in cash or by liquid assets and properties.

The prosecution also argued that Follieri was a “con man” and a “high potential risk of flight” due to the financial means he has. Follieri has been placed under home detention with an electronic monitoring device. He may only leave the house for legal, religious and medical needs.

A status hearing has been set for July 9.