Tax Lien Investment Firm Founder Faces Charges in Credit Scheme

John Arthur Hanratty, a New York-licensed attorney, has been arrested for charges in connection with a fraudulent scheme that involved $20 million of commercial lines of credit, the Justice Department said Monday.

Hanratty was allegedly involved in a scheme to steal money from a Federal Deposit Insurance Corp.-insured bank through the lines of credit that were granted to his municipal tax lien investment firm, according to the department.

He served as the founder and managing director of Ebury Street Capital, an investment firm with a portfolio primarily comprised of municipal tax liens, the DOJ said. He faces one count ...