Follieri and Hathaway are said to have dated for about four years and broke up earlier this month.

People.com reported that the 29-year-old Italian businessmen appeared in federal court Tuesday in New York to answer charges of wire fraud conspiracy and money laundering.

Prosecutors said Follieri was a "con man" who spent hundreds of thousands of dollars obtained from investors to live a lavish lifestyle.

The prosecution also argued that Follieri isn't a U.S. citizen and is a "high potential risk of flight," who has the financial means to flee the country, People.com said.

Follieri was placed under home detention with an electronic monitoring device and may only leave his apartment for legal, medical or religious reasons, the entertainment news Web site said.

A status hearing in the case was scheduled for July 9.