Rye investment firm founder charged in $20 million fraud scheme

The founder of a Rye-based investment firm, John Arthur Hanratty, faces charges related to an alleged $20 million fraud scheme.
Hanratty is accused of orchestrating a plan to unlawfully obtain funds from an FDIC-insured bank through lines of credit for his municipal tax lien investment firm, Ebury Street Capital.
Prosecutors claim that Hanratty made false statements on spreadsheets submitted to the bank, receiving significant sums of money and using part of it to settle with investors threatening legal action.
He faces charges of wire fraud affecting a financial institution and bank fraud, each carrying a maximum sentence of 30 years in prison.