Anne Hathaway: Seduced By a Con Artist

Of all the victims that handsome Italian-American businessman Raffaello Follieri allegedly duped, actress Anne Hathaway fell the hardest.

The stunningly beautiful and talented Hathaway, 25, thought she had found her prince charming in the 30-year-old real estate magnate.

What she found instead was a slimy white-collar criminal.

Even as some friends say they warned Anne about Raffaello Follieri, she stuck by him for months as allegations of his wrongdoing swirled.

In April, he bounced a check ... for $215,000. In May, Follieri's charity - on which Anne once served on the board - came under investigation by the New York State attorney general's office for tax irregularities.

That was the last straw for Anne Hathaway, and not a moment too soon.

Just last week, Follieri was arrested on charges of fraud and conspiracy, as well as money laundering. On June 24, he was branded a "con man" in court by the FBI and prosecutors, accused him of bilking investors of millions.

"She's a sweet girl, and he seemed like the right kind of guy," a friend of Anne Hathaway's told People magazine. "At the end of the day, could she tell you that he was a dirty dealer? Not a chance."

In the aftermath, a source says her busy work schedule - last month, Anne finished shooting the romantic comedy Bride Wars with Kate Hudson, while she's also has promoting her current comedy, Get Smart - is a good thing.

"Anne didn't mention [the breakup], and people around her didn't ask," says the source, who claims to be a friend of Hathaway.

"She was literally blind-sided on this one. She loved [Raffaello Follieri] and so she didn't see much else until now."

Hopefully Raffaello Follieri won't be seeing much else besides a jail cell anytime soon. Sources say he has nowhere close to the amount he needs to free himself on bail. Then again, most of us don't have $21 million.

Guy even spent his birthday in the slammer. He had made plans to fly to Italy (and presumably boink Hathaway feverishly) to celebrate the big day. How the mighty have fallen. Hope the food's good in there, Raffa.