Actress Anne Hathaway, 25, has finally broken up with Italian businessman and accused embezzler Raffaello Follieri, 29, according to the Daily Mail. Hathaway had been with Follieri for four years and through several business scandals.

Follieri’s history of fraud
In 2007, Follieri was sued by billionaire Rob Burkle, who accused him of embezzling corporate money from a charity he set up with Hathaway. He was said to have used the funds to finance private jets, a penthouse, exclusive hotels and restaurants, and generally keeping a lavish lifestyle for himself and Hathaway. He settled that suit in April for around $1.3 million.

In March, he bounced a check for $215,000, but the charges were dropped when he eventually made good on the funds.

His charity, The Follieri Foundation, is currently under investigation by the NY State Attorney General’s office for reasons the state will not disclose. The Follieri Foundation has failed to file required tax forms and is most likely being audited for their financial record keeping. The charity provides vaccinations to children in the third world and most likely keeps Follieri in the lifestyle he’s stolen. When asked for comment, Hathaway’s rep said that she is no longer on the board of the Foundation and is not familiar with the investigation.

Hathaway is said to finally have come to her senses after the latest scandal broke. Her married Get Smart co-star, Steve Carrell, who’s kissing she jokingly praised in a recent interview, is said to have lent a supportive ear on set and to have helped her make the decision to finally break up with the creep:

The Devil Wears Prada actress Anne Hathaway put on a brave face at her latest film premiere last night after breaking up with long-term boyfriend Raffaello Follieri, the Mail Online can reveal.

The 25-year-old movie star ended her four year relationship with Italian-American businessman, 29, over the weekend.

The Brokeback Mountain star’s decision follows over a year of scandal linked to Follieri.

Last week, it was reported his charity Follieri Foundation, which funded vaccination programmes in developing countries, was being investigated by the New York State Attorney General’s Office.

An insider tells the Mail Online that Hathaway made the painful decision to end their relationship because of the effects his controversial business dealings could have on her career….

During the making of Get Smart earlier last summer, Hathaway formed a friendship with co-star Steve Carell, who lent her a supportive ear during her problems with Follieri.

‘She seemed to really be enjoying her freedom, and making new friends in L.A., especially Steve.’

Hathaway’s split from Follieri may mean she finally moves to Hollywood, after years of insisting she would remain on the east coast to stay close to her beau.

A pal said: ‘She seemed to really be enjoying her freedom, and making new friends in L.A., especially Steve.’

[From The Daily Mail]

Anne had an original interview in last week’s Star Magazine, and when asked if marriage with Follieri was “in the cards,” she answered:

“It is in the cards. Absolutely. Just not yet. I’ve always wanted a family. I’m not one of those people who says, ‘What’s the point of marriage? My parents have been married 25 years, in all the glory and all the pain that you can imagine, but they’ve stayed together. I want a strong marriage like that.” [From Star Magazine, print edition, June 16, 2008]

It sounds like Anne realized that Raffaello wasn’t the guy who would be able to weather life’s storms with her. Especially from whichever Federal prison he may end up in.

Anne Hathaway is shown at the Get Smart premiere in London last night, thanks to WENN. Raffaello and Anne are shown at the Oscars on 2/24/08.