Founder And Managing Director Of Tax Lien Investment Firm Convicted Of Fraud And Money Laundering
summary
John Arthur Hanratty, founder of Ebury Street Capital, was convicted of fraud and money laundering for a scheme that defrauded an FDIC-insured bank and investors of over $20 million.
paragraph
John Arthur Hanratty was convicted following a two-week jury trial for orchestrating a scheme to defraud an FDIC-insured bank and investors of more than $20 million. He faced charges including one count of wire fraud, one count of bank fraud, and two counts of money laundering. Hanratty is scheduled to be sentenced on January 20, 2026.
narrative
John Arthur Hanratty, the founder and managing director of Ebury Street Capital, LLC, was convicted of orchestrating a fraudulent scheme to defraud an FDIC-insured bank and investors of over $20 million. Between 2017 and 2021, Hanratty inflated the value of municipal tax lien collateral and falsely claimed the assets were managed by an independent third-party custodian to secure loan advances. This misconduct resulted in significant losses for both the bank and Ebury Street Capital investors. Following a two-week jury trial, Hanratty was found guilty of one count of wire fraud, one count of bank fraud, and two counts of money laundering. He is scheduled to be sentenced on January 20, 2026, facing a combined maximum potential sentence of 50 years in prison. The case was prosecuted by the U.S. Attorney's Office for the Southern District of New York with assistance from the FBI.
Classified financial-fraud(confidence 100%). EDGAR detection: forms 10-K/10-Q/8-K/NT 10-K· recall 67% / precision 23%. detection rule →
Statutes
28 U.S.C. § 515
Parties
ebury street capital, llcjohn arthur hanrattythe outstanding investigative work of the federal bureau of investigation
Keywords
investment firmhanrattytaxfounder managingmanaging directorlien investmentvictim bank-lieninvestmentfraudmoney launderingebury streetstreet capitalfounderfirm
Extracted insights
Dollar amounts 2
- $20.00M $20 Million $10M–$100M
- $20.00M $20 million $10M–$100M
Entities 6
- company ebury street capital, llc
- scheme_term fraud and money laundering
- person john arthur hanratty
- scheme_term one count of wire fraud
- agency the outstanding investigative work of the federal bureau of investigation
- scheme_term two counts of money laundering
Triples 12
- John Arthur Hanratty Convicted Of Fraud And Money Laundering
- John Arthur Hanratty Engaging In A Fraudulent Scheme To Defraud A Bank And Investors Of More Than $20 Million
- Attorney For The United States Sean S. Buckley Announced The Conviction Of John Arthur Hanratty
- John Arthur Hanratty Founded And Managed Ebury Street Capital, Llc
- John Arthur Hanratty Participated In A Fraudulent Scheme To Steal Money From An Fdic-Insured Bank
- John Arthur Hanratty Made Materially False Statements Inflating Tax Lien Collateral Pledged To Victim Bank-1
- John Arthur Hanratty Falsely Told Investors And Victim Bank-1 That The Tax Lien Collateral Was Managed By An Independent Third-Party Custodian
- John Arthur Hanratty Resulted In Millions Of Dollars Of Losses For The Investors In Ebury Street Capital And For Victim Bank-1
- John Arthur Hanratty Convicted Of One Count Of Wire Fraud
- John Arthur Hanratty Convicted Of One Count Of Bank Fraud
- John Arthur Hanratty Convicted Of Two Counts Of Money Laundering
- Mr. Buckley Praised The Outstanding Investigative Work Of The Federal Bureau Of Investigation
Extracted body text (4,397c)
Press Release Founder And Managing Director Of Tax Lien Investment Firm Convicted Of Fraud And Money Laundering Monday, August 4, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York John Arthur Hanratty, a New York-Licensed Attorney, Was Convicted of Engaging in a Fraudulent Scheme to Defraud a Bank and Investors of More Than $20 Million Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, Sean S. Buckley, announced today the conviction of JOHN ARTHUR HANRATTY, the founder and managing director of a tax lien investment firm, for his role in a fraudulent scheme to steal over $20 million from investors and a Federal Deposit Insurance Corporation (“FDIC”)-insured bank. The defendant was found guilty following a two-week jury trial before U.S. District Judge Lorna G. Schofield and is scheduled to be sentenced on January 20, 2026.“John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, lied to investors and stole money from a bank by falsely claiming to own millions of dollars of tax lien collateral to obtain more than $20 million in loan advances,” said Attorney for the United States Sean S. Buckley. “This verdict highlights our Office’s commitment to ensuring the integrity of the lending and investment markets by protecting lenders and investors from financial fraud.”As reflected in the Indictment, public filings, and the evidence presented at trial:HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens. HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer.Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on commercial lines of credit that had been extended to Ebury Street Capital. Specifically, HANRATTY made materially false statements inflating by millions of dollars tax lien collateral pledged to Victim Bank-1. As a result of HANRATTY’s misstatements, Victim Bank-1 was defrauded of over $20 million. In addition, HANRATTY falsely told investors and Victim Bank-1 that the tax lien collateral was managed by an independent third-party custodian, when, in reality, that was not true. The defendant’s fraud ultimately resulted in millions of dollars of losses for the investors in Ebury Street Capital and for Victim Bank-1. * * *HANRATTY, 50, of New Jersey, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and two counts of money laundering, each of which carries a maximum sentence of 10 years in prison.The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation.The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati are in charge of the prosecution, with assistance from Paralegal Specialist Alexander Ross. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated August 4, 2025 Topics Cybercrime Financial Fraud Component USAO - New York, Southern Press Release Number: 25-175
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Press Release Founder And Managing Director Of Tax Lien Investment Firm Convicted Of Fraud And Money Laundering Monday, August 4, 2025 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York John Arthur Hanratty, a New York-Licensed Attorney, Was Convicted of Engaging in a Fraudulent Scheme to Defraud a Bank and Investors of More Than $20 Million Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, Sean S. Buckley, announced today the conviction of JOHN ARTHUR HANRATTY, the founder and managing director of a tax lien investment firm, for his role in a fraudulent scheme to steal over $20 million from investors and a Federal Deposit Insurance Corporation (“FDIC”)-insured bank. The defendant was found guilty following a two-week jury trial before U.S. District Judge Lorna G. Schofield and is scheduled to be sentenced on January 20, 2026.“John Arthur Hanratty, a New York-licensed attorney and the founder of a multi-million-dollar municipal tax lien investment firm, lied to investors and stole money from a bank by falsely claiming to own millions of dollars of tax lien collateral to obtain more than $20 million in loan advances,” said Attorney for the United States Sean S. Buckley. “This verdict highlights our Office’s commitment to ensuring the integrity of the lending and investment markets by protecting lenders and investors from financial fraud.”As reflected in the Indictment, public filings, and the evidence presented at trial:HANRATTY was the Founder and Managing Director of Ebury Street Capital, LLC (“Ebury Street Capital”), an investment firm with a portfolio primarily comprised of municipal tax liens. HANRATTY has been an attorney licensed to practice law in the State of New York since 2002 and held legal and compliance positions at well-known investment firms and financial institutions, including serving as the Chief Compliance Officer and General Counsel for a trading broker dealer.Between 2017 and 2021, HANRATTY participated in a fraudulent scheme to steal money from an FDIC-insured bank (“Victim Bank-1”) by drawing down on commercial lines of credit that had been extended to Ebury Street Capital. Specifically, HANRATTY made materially false statements inflating by millions of dollars tax lien collateral pledged to Victim Bank-1. As a result of HANRATTY’s misstatements, Victim Bank-1 was defrauded of over $20 million. In addition, HANRATTY falsely told investors and Victim Bank-1 that the tax lien collateral was managed by an independent third-party custodian, when, in reality, that was not true. The defendant’s fraud ultimately resulted in millions of dollars of losses for the investors in Ebury Street Capital and for Victim Bank-1. * * *HANRATTY, 50, of New Jersey, was convicted of one count of wire fraud, which carries a maximum sentence of 20 years in prison; one count of bank fraud, which carries a maximum sentence of 30 years in prison; and two counts of money laundering, each of which carries a maximum sentence of 10 years in prison.The maximum potential sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.Mr. Buckley praised the outstanding investigative work of the Federal Bureau of Investigation.The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati are in charge of the prosecution, with assistance from Paralegal Specialist Alexander Ross. Contact Nicholas Biase, Shelby Wratchford(212) 637-2600 Updated August 4, 2025 Topics Cybercrime Financial Fraud Component USAO - New York, Southern Press Release Number: 25-175