During their relationship, Anne Hathaway took part in the development of the charitable Follieri Foundation, serving as a financial donor as well as a member of the foundation's board of directors until 2007. A Manhattan-based charity founded in 2003 focusing on programs such as providing vaccinations for children in Third World nations, the organization had come under investigation in June 2008 by the IRS, for failing to file tax papers required from non-profit organizations. Citing the fear that this and other ongoing legal issues involving Follieri would become detrimental to her acting career, Hathaway ended her relationship with him in mid-June 2008.
Raffaello Follieri was arrested in June 2008 on fraud charges for allegedly fleecing investors out of millions of dollars in a scheme in which Raffaello Follieri posed as the Vatican's point man on real estate investing. It was reported that the FBI confiscated Anne Hathaway's private journals from Follieri's New York City apartment as part of their ongoing investigation into Follieri's activities; however, Anne Hathaway was not charged with any crime.
On October 23, 2008, after earlier pleading guilty, Raffaello Follieri was sentenced to four and a half years in prison.
In the October 2008 issue of W Magazine, Anne Hathaway spoke for the first time of the break-up and Raffaello Follieri's subsequent arrest. She related that she "spent a week in shock" after Follieri's arrest, and credited the kindness of friends for her ability to keep working during such difficult times. That same month, during her turn as host of Saturday Night Live, Anne Hathaway joked about the experience in her opening monologue.
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