Former attorney John Arthur Hanratty has been handed a massive setback as he faces the possibility of decades behind bars following his conviction for orchestrating a multi-million-dollar fraudulent scheme. The founder and managing director of Ebury Street Capital, LLC, was found guilty after a two-week jury trial in New York for stealing over $20 million from investors and a Federal Deposit Insurance Corporation (FDIC)-insured bank.
Hanratty’s conviction comes after he falsely claimed to own millions of dollars in tax lien collateral to secure loan advances. The deceitful scheme, which spanned from 2017 to 2021, resulted in significant losses for both investors and the bank, according to Attorney for the United States, Sean S. Buckley.
According to the indictment and trial evidence, Hanratty drew down on commercial lines of credit extended to Ebury Street Capital by making false statements about the value of tax lien collateral. He also falsely informed investors and the bank that an independent third-party custodian was managing the tax liens when no such arrangement existed.
Now, at 50 years old, Hanratty is facing a maximum sentence of 60 years in prison for his crimes, which include one count of wire fraud, one count of bank fraud, and two counts of money laundering. The charges carry respective maximum sentences of 20, 30, and 10 years each.
Despite the gravity of the conviction, Buckley emphasized the commitment of his office to protecting investors and lenders from financial fraud. He also commended the investigative work of the Federal Bureau of Investigation in bringing Hanratty to justice.
The prosecution was led by Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati, with Paralegal Specialist Alexander Ross providing essential support.
Related Federal Cases
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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