A BRIT is facing charges in a New York court over his alleged connection to a major $99 million wine fraud.
James Wellesley, 58, pleaded not guilty on Friday after he was extradited from the UK.
Kent PoliceJames Wellesley, who allegedly sold vino that didn’t exist for £12k[/caption]
BonhamsThe defendants are alleged to have solicited $99 million in investments from residents (picture is not of wine in question)[/caption]
LinkedinThe US Attorney’s Office alleges that neither the wine collections not the wine itself actually exist[/caption]
Kent PoliceStephen Burton had been extradited from Morocco in 2023[/caption]
He has been detained on charges of wire fraud and money laundering.
Wellesley was arraigned today before United States Magistrate Judge Robert M. Levy
The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments.
But the US Attorney’s Office alleges that neither the wine collections not the wine itself actually exist.
This included Domaine de la Romanée-Conti – which is listed online for more than $17,000 per bottle.
These loans were said to be secured against a stockpile of expensive wines.
The defendants are alleged to have solicited $99 million in investments from residents of New York and other areas between 2017 and 2019.
Wellesley’s co-defendant Stephen Burton had been extradited from Morocco in 2023.
He had been trying to enter the north African country on a false Zimbabwean passport.
60-year-old Brit Burton has also pleaded not guilty to similar charges.
Wellesley is reported to have had many aliases including Andrew Fuller and Andrew Templar.
Christopher Raia, assistant director in charge of the FBI New York office, said: “James Wellesley and his business partner allegedly concocted an elaborate scheme defrauding investors out of millions of dollars to finance their own personal expenses.
“Their alleged deceit spread across years and continents.”
If convicted, the two each face up to 20 years in prison.
The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments
Kent PoliceThe defendants are alleged to have solicited $99 million in investments from residents of New York[/caption]
AlamyThe Brits are facing charges in a New York court[/caption]
Prosecutors allege the pair used loan proceeds “to make fraudulent interest payments to investors and for their own personal expenses”.
Ricky Patel, a Homeland Security special agent, said: “James Wellesley and his co-conspirator are accused of masterminding their nearly $100 million international fraud scheme that exploited the unsuspecting public, including New Yorkers, for their own selfish enrichment.
“As alleged, the defendants claimed Bordeaux Cellars boasted a high-value wine stockpile and a clientele of ‘high-net-worth wine collectors’ – and in turn profited handsomely – all while they swindled investors out of hundreds of thousands of dollars, if not more.
“Let it be known, regardless of the nature of the transnational criminal scheme, HSI New York, alongside our law enforcement partners, will continue to adapt and evolve to fight global and domestic financial crimes wherever and whenever possible.”
“Today’s arraignment sends a message to all perpetrators of global fraud schemes that my office will work tirelessly to ensure they answer for crimes committed in the United States,” said US attorney Joseph Nocella.
“We will not rest in our efforts to seek justice for victims of fraud.”