Anne Hathaway Beau Raffaello Follieri Under Investigation by State of NY

Raffaello Follieri, who heads the Follieri Foundation. The charity is a nonprofit agency providing immunizations for children in Third World countries.

Actress25, has been in a four year relationship with

While the exact nature of the inquiry is currently unknown, the attorney general's office has confirmed that it has issued subpoenas for various financial records of the Manhattan-based charity. The state of New York and the IRS are investigating Follieri, who has reportedly not filed the required tax disclosure forms, among other things. New York Attorney General Andrew Cuomo is heading the probe.

A representative for Follieri said the 29-year-old businessman "looks forward to concluding this matter in a timely and expeditious manner...so that he may continue to fulfill his ongoing philanthropic endeavors worldwide."

Raffaello Follieri is an Italian businessman and real estate investor. The telephone at his 5th Avenue Manhattan apartment has been disconnected and his foundation website has been shut down. Ann Hathaway was on the foundation's board of directors at one time. Her publicist, Stephen Huvane said this in an e-mail:



There is an investigation going on that does not involve Anne. She is no longer a board member of the Follieri Foundation. Other than that we will not be commenting.”

Follieri has been traveling a slippery slope with regard to his business dealings for quite some time. In researching for this story, we found an article in the June 15, 2007 Wall Street Journal that we found interesting. It seems that in early 2005, Los Angeles billionaire Ronald Burkle, doing business as Yucaipa Investments, met Italian businessman Raffaello Follieri and quickly committed up to $105 million to a joint venture to buy surplus properties from the Catholic Church and redevelop them.

Things apparently deteriorated rapidly.



A lawsuit was filed in Delaware state court by Burkle alleging that venture capital from their joint alliance had been diverted to finance the 28-year-old Mr. Follieri's "personal extravagances and budget mismanagement." Follieri and the Follieri Group, according to papers filed, "willfully and systematically misappropriated" at least $1.3 million of the over $55 million Yucaipa had up to that time sunk into the joint venture, Follieri/Yucaipa Investments LLC.

Among the purported extravagances: private jet travel for Mr. Follieri and his girlfriend, actress Anne Hathaway; a penthouse apartment in New York used by Mr. Follieri; "massive charges for 'five-star' lodging, meals and entertainment" as well as medical care for Follieri relatives and a dog. Additionally, the suit says, hundreds of thousands of dollars were improperly loaned to the Follieri Foundation, a nonprofit charity run by Mr. Follieri and his family.

The suit was reportedly settled earlier this year, with Follieri paying a reported $12 million to Burkle.

Check out photos of the couple below, including a photo of billionaire Burkle and his impressive La Jolla pad.







