Source: Office of United States Attorneys
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.
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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.