"Prosecutors said Wellesley and Burton, posing as executives at London- and Hong Kong-registered Bordeaux Cellars, raised $99.4 million by promising loan investors they would receive regular interest payments from "high net worth" wine collectors. The defendants allegedly claimed the loans were backed by an inventory of more than 25,000 bottles of wine, including from Domaine de la Romanee-Conti in Burgundy and Chateau Lafleur in Bordeaux."
"Wellesley, also known as Andrew Fuller, had pleaded not guilty to three charges including conspiracy in July. He remains jailed at Brooklyn's Metropolitan Detention Center, after unsuccessfully fighting extradition from Britain. According to his plea agreement, Wellesley could face 10 to 12-1/2 years in prison under recommended federal guidelines. He also agreed to forfeit $1 million plus funds in more than two dozen bank accounts."
Two British men, James Wellesley and Stephen Burton, pleaded guilty for roles in a nearly $100 million fraud that promised investors interest from loans to wealthy wine collectors. They posed as executives at London- and Hong Kong-registered Bordeaux Cellars and claimed loans were backed by an inventory of more than 25,000 bottles, including rare Burgundy and Bordeaux labels. Prosecutors said Bordeaux Cellars controlled as few as 217 bottles and that loan proceeds were used for personal expenses and to pay interest to some investors. The scheme ran from June 2017 to February 2019 and collapsed when interest payments stopped. Both defendants remain jailed and face forfeiture and federal sentences.
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