John Arthur Hanratty, Bank and Wire Fraud, New York 2026

Banking on Deceit: Hanratty's $20 Million Scam

New York, NY - In a brazen scheme that duped a major bank out of $20 million, John Arthur Hanratty, a New York-licensed attorney and founder of Ebury Street Capital, LLC, has been charged with bank fraud and wire fraud.

According to federal authorities, Hanratty used the funds to pay off investors who were threatening to sue his firm, rather than investing in municipal tax liens as promised.

Between 2017 and 2021, Hanratty submitted false statements to Victim Bank-1, an FDIC-insured bank, in order to secure commercial lines of credit totaling $20 million.

The false statements included listing large quantities of municipal tax liens that Ebury Street Capital did not actually own and double-counting municipal tax liens by listing the same liens on multiple borrowing base certificates.

As a result of these false statements, Victim Bank-1 paid Ebury Street Capital large sums of money to which it was not entitled.

Hanratty's scheme was uncovered by the FBI, who worked closely with federal authorities to bring the charges.

Hanratty was arrested this morning and is expected to be presented today before a U.S. Magistrate Judge in the District of Puerto Rico.

Defendant: John Arthur Hanratty

Criminal Charges: Bank fraud and wire fraud

City and State: New York

Exact Date: 05/30/2026

Sentence or Outcome: Pending

Dollar Amounts: $20 million

Source: https://www.justice.gov/usao-sdny/pr/founder-and-managing-director-tax-lien-investment-firm-charged-bank-fraud-and-wire