Raffaelo Follieri, an Italian businessman, known for his four year relationship with the actress Anne Hathaway was arrested in New York for conspiracy, wire fraud and money laundering.

Follieri was involved in a fraudulent real estate scheme that he claimed was linked to the Vatican, Reuters reported. Follieri, who is 29 years-old has claimed that he was appointed to manage its financial affairs.

The news about Roberto Follieri, who could face a life in prison if found guilty on all charges, follows after last week the English newspaper The Daily Mail has reported that Anne Hathaway has dumped him

Apparently, Anne Hathaway has dumped Follieri because his controversial business dealings haves started to affect her career.

Last week, State Attorney General Andrew Cuomo has launched an investigation of a children's charity, which is being headed by Raffaello Follieri.

Although it is unknown why the Manhattan-based Follieri Foundation is under investigation, over the last few weeks, Cuomo's investigators have served subpoenas seeking financial documents.

A rep for Hathaway, who was member of the board of directors until last year when traveled to Central America with Follieri for a charity-funded vaccination program, said the actress is not familiar with the situation since is not involved with the charity anymore.

Follieri has had some bad press before. The Wall Street Journal reported last year that billionaire Ron Burkle had filed a lawsuit against Follieri for allegedly “willfully and systematically misappropriating” $1.3 million in business funds to support his luxurious lifestyle. The Italian businessman denied wrongdoing.

Financial issues followed him into 2008, as Follieri was recently ordered by a Washington, D.C., court to pay a public relations firm $250,000 for work done on his behalf.

Also he was arrested two months ago for bouncing a $215,000 check, which was written to an accountant on behalf of his real-estate company, "Follieri Group." Charges were dropped in May after he paid the money back.