NEW YORK – The Latest on dropped case against Fiat scion Lapo Elkann (all times local):

1:25 p.m.

The grandson of the Italian founder of Fiat Automobiles says he has faith in American justice after New York City prosecutors dropped their case against him following his November arrest with an escort.

In a statement provided by his publicist Wednesday, Lapo Elkann says he’s been reflecting since his arrest for filing a false report.

Investigators believed the 39-year-old Elkann falsely claimed he was being held against his will by the escort and demanded $10,000.

Authorities say he made up the story after he ran out of money following a two-day drug and alcohol bender with the escort in a Manhattan public housing apartment.

Manhattan prosecutors declined to prosecute the case Wednesday.

Elkann’s lawyer says they did so after determining no crime was committed.

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10:15 a.m.

A criminal charge has been dropped against the playboy grandson of the Italian founder of Fiat Automobiles who had been accused of filing a false report when he claimed he was being held against his will by an escort in New York City.

The Manhattan district attorney’s office said Wednesday that it had declined to prosecute Lapo Elkann and had no further comment.

The 39-year-old was arrested outside a public housing project in December after his family contacted police, saying he needed $10,000 to guarantee his safety. But authorities say he made up the story after he ran out of money following a two-day binge with the escort.

Elkann’s attorney, Randy Zelin, said the decision was made after prosecutors reviewed the case and found a crime had not been committed.