John Arthur Hanratty, a New York-licensed attorney and once-trusted head of a company that invests in tax liens, has been found guilty of serious financial crimes. The founder of Ebury Street Capital, LLC, ran a scheme to defraud a federally insured bank and his own investors of more than $20 million. Hanratty was found guilty after a two-week jury trial and risks a lengthy prison sentence, according to the United States Attorney’s Office for the Southern District of New York.
Sean S. Buckley, Attorney for the United States, underscored the weight of Hanratty’s deceit, saying, “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.” Detailed evidence presented at the trial revealed Hanratty’s manipulation of commercial lines of credit and misrepresentation of the value of tax lien collateral to “Victim Bank-1,” resulting in a multimillion-dollar loss for the bank and its investors. According to the United States Attorney’s Office, Hanratty’s misleading claim that the tax lien collateral would be managed by an independent third-party custodian was even more incriminating.
The indictment revealed that Hanratty was fraudulent in fraudulent operations from 2017 to 2021, including inflating the value of tax lien collateral by millions of dollars. These acts enabled him to draw down on lines of credit, resulting in significant losses. Hanratty, a compliance consultant with legal experience at major investment firms, utilized his expertise and power to create the conspiracy. Hanratty, of New Jersey, was convicted of one count of wire fraud, with a maximum penalty of 20 years; one count of bank fraud, with a maximum sentence of 30 years; and two counts of money laundering, each with a maximum sentence of 10 years in prison.
The United States Attorney’s Office took a moment to praise the Federal Bureau of Investigation for their outstanding investigative efforts in exposing Hanratty’s malpractice. The Office’s Complex Frauds and Cybercrime Unit handled the prosecution, which was led by Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati, with assistance from Paralegal Specialist Alexander Ross. Hanratty is scheduled to be sentenced on January 20, 2026, and he is awaiting a decision from U.S. District Judge Lorna G. Schofield on the length of his prison sentence.
