UK Man Faces Charges in $99 Million Wine Fraud Case

A United Kingdom resident, James Wellesley, 56, was arraigned in Brooklyn federal court following his extradition from the UK. He faces charges related to a $99 million money laundering scheme allegedly conducted through a fraudulent wine company. Wellesley, along with co-defendant Stephen Burton, 58, is accused of wire fraud conspiracy, wire fraud, and money laundering conspiracy. The charges stem from activities linked to Bordeaux Cellars, a company they operated.

Details of the Alleged Scheme

The indictment claims that between June 2017 and February 2019, Wellesley and Burton posed as executives at Bordeaux Cellars. They allegedly solicited investments from individuals in New York and at various investor conferences both in the U.S. and internationally. The duo purportedly promised investors that Bordeaux Cellars brokered loans between them and affluent wine collectors, with the loans being fully collateralized by high-value wine collections.

Prosecutors Uncover Deceptive Practices

According to court documents, the supposed “high-net-worth wine collectors” were fictitious, and Bordeaux Cellars did not possess the wine collections claimed to secure the loans. Instead, Wellesley and Burton allegedly used funds from new investors to pay fraudulent interest to existing investors and for personal expenses. This scheme reportedly resulted in $99 million being misappropriated.

Legal Proceedings and Statements

United States Attorney Joseph Nocella emphasized the commitment to pursuing justice for victims of fraud. Ricky Patel, HSI New York special agent in charge, accused Wellesley and Burton of exploiting unsuspecting investors for personal gain. Burton was extradited from Morocco in 2023 and is awaiting trial, while Wellesley remains detained pending trial. If convicted, both face up to 20 years in prison.