NEW YORK (AP) — An Italian businessman who once dated actress Anne Hathaway was arrested Tuesday on charges he posed as a representative of the Vatican to fleece wealthy investors in a real estate company that sought to buy and redevelop Roman Catholic Church property.

Bail was set at $21 million for Raffaello Follieri. Federal prosecutors said they have "overwhelming" evidence that he improperly spent up to $6 million from investors, much of it on a lavish lifestyle, including privately chartered jet travel with his girlfriend and others, expensive meals and clothing and a posh Manhattan apartment.

The girlfriend was not identified, but it has been widely reported that Hathaway, the star of films including "Get Smart," "The Devil Wears Prada" and "The Princess Diaries," had until recently dated Follieri, 29.