It looks like Anne Hathaway pulled out of the relationship just in time, because things just went from bad to oh-shit-I’m-screwed for her ex-boyfriend Raffaello Follieri. The 29-year old Italian businessman is staring down 20 years in prison for posing as an agent of the Vatican in order to scam investors out millions of dollars. The 18-page indictment charges

Follieri boasted of meeting Pope Benedict and of being tapped as the Vatican’s number one man on U.S. real estate deals. He used investors’ money to hire a pair of monsignors… to [dress as] senior clergyman “to create the false impression that Follieri had close ties to the Vatican.”

Prosecutors say Follieri used the loot to live the high life with Hathaway. His luxury expenses included a $37,000-a-month apartment, tailor-made Italian suits and a $30,000 house call from his physician, who had to be flown in to London.

That’s why you never do business with Italians. It’s always “Some day — and that day may never come — I’ll call upon you to do a service for me” this and “You nothing but a-skin and bones-a! How come-a you no eat-a the canoli? Mama mia!” that. Unless you’re in the market for a couple of reams of chest hair or pizza and a hair cut, you’re better off just avoiding them altogether. Fortunately, you can usually smell them coming a mile away, so keeping your distance isn’t too hard.

Anne at the Australian premiere of “Get Smart”:

After four years together, actress Anne Hathaway finally dumped her swindling check-bouncing boyfriend Raffaello Follieri. The The Daily Mail offers this insight into the split:

Hathaway made the painful decision because of the effects his controversial business dealings could have on her career.

His charity Follieri Foundation, which funded vaccination programs in developing countries, was being investigated by the New York State Attorney General’s Office [for fraud]. Follieri was [also] sued by a former business associate for bouncing a $215,000 check [last year].

The real test is going to be her ability to remain immune to his attempts to win her back. That first (collect) call from prison; the bouquets of yellow roses (bought with a credit card opened in her name); the diamond necklace (purchased with the insurance money from those “debilitating injuries” he suffered in that “car crash” last summer). A girl’d practically have to be an impenetrable fortress to deny those kind of romantic gestures. Or at least not legally blind and functionally retarded.

Promo stills for Get Smart:

Anne Hathaway sported an hideous fake orange tan yesterday on the set of her new movie “Bride Wars.” A legal squabble later erupted between the producers of the film and Paris Hilton, who claims exclusive rights to the skin shades Burnt Sienna, Vivid Tangerine, Raw Ochre, and Neon Carrot. Also something called the “Double Bubble Blowjob” and “felching.” Reps for either side were unavailable for comment.

With Kate Hudson on set:

It’s that magical time of year when the weeks of drinking laxative tea and binge exercising until their little black hearts almost give out pays off in spades for Hollywood actresses. It’s called the Academy Awards, and thanks to the timely end of the Writer’s Strike, it went off without a hitch last night. The big winner of the evening was “No Country for Old Men,” taking home the Oscars for Best Picture, Best Director, and Best Adapted Screenplay. There were various other boring awards for movies you’ll never see, but I know you want me to shut the hell up and start talking fashion. This year’s Oscars was all about fabric — the more fabric, the merrier. Plenty of ruching, gathering, organza overlay and fishtails. My favorites of the evening were Penelope Cruz in her custom Chanel gown and Kerri Russell’s vintage floral necklace. But there were plenty of others…

Anne Hathaway’s flowered and draped red Marchesa gown somehow made it despite my first instinct to write it off for excessive use of foliage. I usually detest red lips, too, but she manages to keep hers from looking harsh and Bozo-the-Clownish. Her hair and the rest of her makeup is very simple, which keeps the gratuitous excess of the dress in check. Congratulations, Anne — you defied the odds:

Cameron Diaz wore a pale pink Dior by John Galliano bustier gown. I’m not wild about the dress, but I like the color, and that business at the hips works for her because she’s built like a twelve-year old boy:

Jennifer Garner wore a black silk taffeta Oscar de la Renta fishtail gown. I think Oscar could have eased up on those big fat ruffles at the bottom and Jen’s hair looks like a damn combover, but overall it was a success:

Penelope Cruz had a navy Chanel Haute Couture feathered gown designed specifically for her for the big event. It’s over the top and princessy, I know, but for some reason I love it on her. She kept her jewelery and makeup simple, and like Anne Hathaway, that keeps the dress from looking garish. Kudos:

Nicole Kidman wore classically simple black Balenciaga dress. The main attraction here is obviously the 1,399-carat diamond L’Wren Scott necklace hanging down to her waist. I went back and forth on this one. It kind of looks like she pulled down a chandelier from a late nineteenth century whorehouse and draped it around her neck. But then again, I really like her dress. And diamonds are shiny. You see my dilemna here. I’ll leave it up to you:

Hilary Swank has a knack for red carpet glamor. Her one-shouldered Atelier Versace gown isn’t my favorite of the dresses she’s worn, but it’s not bad either. Makeup, hair and accessories are all simple, which makes the flowers on the bodice not as hideously distracting:

Renee Zellweger gives a whole new meaning to the term “alabaster” in her hand-embroidered Carolina Herrera gown. I have to hand it to her — she looks fantastic. And her face is way less ruddy and scabby than usual. Looks like Chappy really dressed to impress last night!:

Keri Russel’s 46-carat-diamond H. Stern necklace paired perfectly with her strapless Nina Ricci organza bustier dress. I loved her look more than any other of the night. That necklace is fantastic. Not so hot? Standing like you’ve got gout:

Laura Linney wore a black strapless fishtail Michael Kors gown with a diamond and blue topaz pendant. Simple, classic, elegant, blah blah blah:

Kristin Chenoweth worked an hour-glass figure in a sheer black Armani Prive dress. Her hair looks like crap, but I love the diamond cuff and her skin is like buttah. Nice rack, too. Hooray for boobies!: