Of all the dozens of victims dashing Italian businessman Raffaello Follieri allegedly duped, actress Anne Hathaway fell the hardest, friends of the brunette beauty tell People in its latest issue, on sale Friday.

After shooting to fame at 18 as a squeaky-clean Disney heroine in The Princess Diaries, Hathaway, 25, thought she had found her Prince Charming in 30-year-old Follieri, telling People in 2006 that he was a keeper. “You can say what you want about it, but we just love each other,” the actress said at the time.

Even as some friends say they warned Hathaway about Follieri, she stuck by him for months as allegations of his wrongdoing swirled. Last month, Follieri was arrested on charges of wire-fraud conspiracy and money laundering. Appearing in a Manhattan court on June 24, he was branded a “con man” by federal prosecutors, who accuse him of bilking investors of millions.

“She’s a sweet girl, and he seemed like the right kind of guy,” says a friend of Hathaway’s. “At the end of the day, could she tell you that he was a dirty dealer? No way.”

But when Hathaway learned that Follieri’s charitable foundation was under investigation by the New York State attorney general for tax irregularities, the actress broke off the relationship. Says a pal: “That was the last straw.”

In the aftermath, a source close to the star says her busy work schedule – last month she finished shooting the romantic comedy Bride Wars with Kate Hudson and she has been promoting her current comedy Get Smart – has been a welcome distraction.

“Anne didn’t mention [the breakup], and people around her didn’t ask,” says the source. “She was completely blinded on this one. She loved him and so she didn’t see much else until now.”

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A friend of Anne Hathaway’s ex-boyfriend Raffaelo Follieri has hit out at claims the actress had any involvement in the Italian businessman’s allegedly fraudulent dealings.

The Devil Wears Prada star was accused by friends of the Italian businessman last week of turning her former flame in to the Federal Bureau of Investigation.

The pair split last month, shortly before he was arrested on suspicion of fraud.

Among allegations of money laundering, Follieri has been accused of lying to an investor, claiming he was working as the chief financial officer for the Vatican.

According to the New York Daily News, Atlantic City priest William Hodge – who befriended Follieri during a proposed business deal in 2006 – told clerics Hathaway “had nothing to do with Follieri’s plot”.

Hodge has also denied allegations he accepted money in the alleged Follieri deal to extract $6 million from investors.

Follieri, 30, remains behind bars until he can post $21 million bail.
A status hearing for Follieri has been set for next week.

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WENN

How exactly did the feds “Get Smart” about Anne Hathaway’s breakup with her troubled boyfriend?

A pal of jailed wheeler-dealer Raffaello Follieri suspects the starlet spoke with the FBI shortly before they arrested her ex for an alleged $6 million con job.

“It makes sense,” the friend said. “She’s referred to as his former girlfriend in the indictment even though her spokesman never confirmed they broke up.”

Hathaway, who is not identified by name in the criminal complaint, split with Follieri shortly before his arrest last week. He is charged with posing as an agent of the Vatican to fleece investors out of millions.

“I think that in return for her cooperation, the feds held off on arresting Follieri until she was out of the country,” the friend said.

Hathaway’s camp has declined to comment on Follieri’s legal troubles. The Italian businessman faces up to 20 years in federal prison if he’s convicted of wire-fraud and money-laundering charges.

The 29-year-old businessman is accused of living the high life after he allegedly duped investors into pouring millions of dollars into a phony real-estate scheme.

Follieri, a fixture at Hathaway’s side for years, remains locked up on $21 million bail.

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How exactly did the feds “Get Smart” about Anne Hathaway’s breakup with her troubled boyfriend?

A pal of jailed wheeler-dealer Raffaello Follieri suspects the starlet spoke with the FBI shortly before they arrested her ex for an alleged $6 million con job.

“It makes sense,” the friend said. “She’s referred to as his former girlfriend in the indictment even though her spokesman never confirmed they broke up.”

Hathaway, who is not identified by name in the criminal complaint, split with Follieri shortly before his arrest last week. He is charged with posing as an agent of the Vatican to fleece investors out of millions.

“I think that in return for her cooperation, the feds held off on arresting Follieri until she was out of the country,” the friend said.

Hathaway’s camp has declined to comment on Follieri’s legal troubles. The Italian businessman faces up to 20 years in federal prison if he’s convicted of wire-fraud and money-laundering charges.

The 29-year-old businessman is accused of living the high life after he allegedly duped investors into pouring millions of dollars into a phony real-estate scheme.

Follieri, a fixture at Hathaway’s side for years, remains locked up on $21 million bail.

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WENN

So much for a happy birthday.

Anne Hathaway’s embattled ex Raffaello Follieri spent his 30th birthday behind bars, according to two New York City papers.

Following his hospital release Wednesday, Follieri — who had suffered an anxiety attack after his bail hearing Tuesday — was taken to the Metropolitan Correctional Center, as he was unable to pay his $21 million bail. (Usmagazine.com confirmed that he arrived at 12:51 a.m.)

The New York Post reports that the Italian businessman — who is accused of trying to cheat investors out of $6 million — had planned to jet to his native Italy for a birthday bash with pals Saturday at Villa Verde restaurant on the island of Capri.

“He wasn’t sure whether Anne Hathaway was going to come,” a pal told New York’s Daily News.

An insider told the paper that she still has “boxes of her stuff at his apartment.” Their beloved green-eyed chocolate Labrador, Esmerelda, had been staying at his NYC apartment as she promoted Get Smart, according to the paper.

Hathaway, 25 — who has yet to comment on the situation — was photographed in Mexico City Wednesday at a premiere for her spy comedy Get Smart.

A source told Usmagazine.com that she split with Follieri after four years because “all the shady stuff was too much.”

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WENN

Anne Hathaway declared her love for recently ditched boyfriend Raffaelo Follieri in the last interview she gave before splitting with him.

The Devil Wears Prada star ended her four-year romance with the Italian earlier this month after months of controversy surrounding Follieri’s business dealings.
Follieri is currently facing a $21 million bail bill to keep him out of jail as he awaits trial on wire fraud and money laundering charges.

But just weeks ago, Hathaway was cooing about the 29-year-old Italian – and sharing their plans to buy a new home together in New York.

She told InStyle, “I enjoy living with him so much, but we’re in his apartment – and we’ve decided that it’s time to find where our home is going to be.”

When grilled on the possibility of a wedding, she replied, “We’re quite happy. I’m not sweating out a proposal.”

Anne Hathaway’s ex-boyfriend, Italian businessman Raffaello Follieri, has been arrested on charges of wire fraud conspiracy and money laundering, according to the Associated Press.

He is due in Manhattan federal court Tuesday.

Follieri, 29, is accused of falsely telling an investor that he had been appointed as the chief financial officer of the Vatican so he could obtain properties of the Catholic church in the U.S. at a discount to fair market value, the AP reports.

The Daily Mail of London recently reported that Hathaway, 25, broke it off with Follieri because she feared that his recent legal woes could hurt her career.

An additional source confirmed the split to Usmagazine.com: “Yes, they’re taking a break. All the shady stuff was too much.”

Follieri is also under investigation by the New York State Attorney General’s office for failing to file tax-disclosure forms for his charity, the Follieri Foundation.

He was arrested in April for allegedly writing a $215,000 bad check.

During an appearance on The View that aired last Thursday, Hathaway admitted she wasn’t feeling her “girlish, bubbly” self.

She told Joy Behar, “I’m kind of somber today.”

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