Raffaello Follieri, Anne Hathaway's smooth talking ex-boyfriend, pleaded guilty to his Vatican scam.

As part of his plea, Follieri admitted misappropriating at least $2.4 million of investor money, sending it to foreign personal bank accounts that were disguised as business accounts. He will service at least 5 years in jail.

"I knew what I was doing was wrong," he told U.S. District Judge John G. Koeltl in Manhattan as he stood in a loose-fitting prison uniform. He has been in jail since his June 24 arrest, unable to make $21 million bail.

Follieri misled investors to think he was spending their money to buy Catholic properties below market value "when he in fact used it to live a lavish lifestyle," according to prosecutors.

Hathaway was once on the board of the Follieri Foundation, but her publicist has said she no longer serves in that capacity and is not part of any probes. Anne dumped Raffaello before the scam was exposed.