John Arthur Hanratty, founder and managing director of Ebury Street Capital, LLC, has been convicted of wire fraud, bank fraud, and money laundering for his role in a scheme that defrauded investors and an FDIC-insured bank of over $20 million. The conviction was announced by Sean S. Buckley, Attorney for the United States acting under authority conferred by 28 U.S.C. § 515. The verdict followed a two-week jury trial before U.S. District Judge Lorna G. Schofield. Sentencing is scheduled for 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.”
According to court documents and evidence presented at trial, Hanratty led Ebury Street Capital with a portfolio focused on municipal tax liens. He had been licensed as an attorney in New York since 2002 and held senior legal roles at various financial institutions.
From 2017 through 2021, Hanratty misrepresented the value of tax lien collateral pledged to secure commercial lines of credit from an FDIC-insured bank referred to as Victim Bank-1. These false statements led the bank to provide more than $20 million in loan advances based on inflated collateral values. Additionally, Hanratty told both investors and the bank that an independent third-party custodian managed these assets; this claim was found to be untrue.
The fraudulent conduct resulted in significant losses for both Victim Bank-1 and investors in Ebury Street Capital.
Hanratty, age 50 and residing in New Jersey, was convicted on one count each of wire fraud (maximum sentence: 20 years) and bank fraud (maximum sentence: 30 years), as well as two counts of money laundering (each carrying up to 10 years). Sentencing will ultimately be determined by the judge.
Sean S. Buckley commended the Federal Bureau of Investigation for its investigative work on this case.
The prosecution is being handled by the Complex Frauds and Cybercrime Unit within the U.S. Attorney’s Office for the Southern District of New York. Assistant U.S. Attorneys Andrew Chan, Nicholas Chiuchiolo, Danielle Kudla, and Adam Sowlati are leading the case with support from Paralegal Specialist Alexander Ross.
