An Italian-born businessman invented connections with the Vatican to dupe investors out of millions of dollars, New York authorities have alleged.

Raffaello Follieri, 29, told potential investors he could buy land owned by the Catholic Church in the US at bargain prices, prosecutors say.

But instead he used their money to fund a lavish lifestyle.

Mr Follieri, who gained a high profile as long-term partner of actress Anne Hathaway, is due in court later.

He faces fraud and money-laundering charges. His lawyers have not yet issued a statement.

According to papers lodged in Manhattan's District Court, the businessman told potential clients that the Vatican had formally appointed him to manage its financial affairs.

To bolster his claims he kept various ceremonial robes at his office in New York, including those of senior clergymen, according to witnesses cited by the prosecution.

He also allegedly hired two clergymen to help with his business, and asked one clergyman to dress up in the vestments of a more senior rank.

From 2005 to 2007 he received millions of dollars from an unnamed private equity firm, which he used to fund an upmarket Manhattan flat and charter private jets.

Mr Follieri has been charged with several counts of fraud and money laundering.

(BBC)

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