John Arthur Hanratty, founder and managing director of Ebury Street Capital, LLC, was sentenced on Tuesday, May 26, 2026, to 12 months and a day in prison for his role in a scheme to defraud an FDIC-insured bank of nearly $20 million. Hanratty, 51, was previously convicted in August 2025 of wire fraud, bank fraud, and money laundering following a jury trial.
Between 2017 and 2021, Hanratty engaged in a fraudulent scheme by making materially false statements about the municipal tax lien collateral pledged to the victim bank. He inflated the value of this collateral by millions of dollars, adding supposed assets that Ebury Street Capital never owned. He also falsely informed both investors and the bank that the tax lien collateral was managed by an independent third-party custodian, fabricating records to conceal the truth.
"John Arthur Hanratty scammed his bank by falsely claiming to own millions of dollars of assets to secure more than $20 million in loan advances," said Attorney for the United States Sean S. Buckley. "In reality, the bank was left without the promised collateral and suffered millions in losses." The fraud resulted in nearly $20 million in losses for the bank and over $8 million for Ebury investors, with Hanratty laundering the fraudulently obtained money for his own benefit. In addition to the prison term, Hanratty was sentenced to two years of supervised release and ordered to forfeit approximately $17.7 million, with restitution to follow.