John Arthur Hanratty | New York Criminal Defense Attorney

The founder and managing director of a New York-based tax lien investment firm has been sentenced for orchestrating a fraudulent scheme that defrauded a bank and investors of over $20 million, according to verified court records and legal filings. John Arthur Hanratty, a New York-licensed attorney and the founder of Ebury Street Capital, was convicted in August 2025 on charges including wire fraud, bank fraud, and money laundering. The scheme spanned from 2017 to 2021 and involved falsifying financial documents to inflate the firm’s asset base, enabling unauthorized withdrawals of funds. The prosecution revealed that Hanratty made materially false statements on “borrowing base certificates”—spreadsheets summarizing tax lien collateral—purportedly owned by Ebury Street Capital. These inflated valuations allowed the firm to draw down funds exceeding what it legitimately controlled, including double-counting the same liens across multiple certificates. The fraudulent actions defrauded an FDIC-insured bank, identified in court documents as “Victim Bank-1,” and diverted portions of the $20 million for purposes other than purchasing tax liens or covering business expenses. Sentencing was deferred until January 2026, with the maximum potential penalty for wire fraud alone reaching 20 years in prison. Legal experts noted that the case underscores systemic risks in tax lien investment practices, particularly regarding transparency in collateral valuation. The conviction follows a broader crackdown on financial fraud in New York’s Southern District, where prosecutors have targeted high-profile cases involving misappropriation of funds and false financial reporting. Ebury Street Capital’s credit facility has since been exhausted, leaving the firm owing the principal and accrued interest to the bank. No further details on Hanratty’s current status or sentencing outcome were available in verified sources as of May 27, 2026.