UK man pleads not guilty in New York to $99 million wine fraud
NEW YORK - A British man pleaded not guilty on Friday in New York to charges he helped mastermind a nearly $100 million fraud whose victims invested in loans meant for wealthy wine collectors -- except that neither the collectors nor their wine existed.
James Wellesley, 58, entered his plea to wire fraud, wire fraud conspiracy and money laundering conspiracy charges before U.S. Magistrate Judge Robert Levy in Brooklyn.
Wellesley, also known as Andrew Fuller, was ordered detained without bail at Brooklyn's Metropolitan Detention Center, after unsuccessfully fighting extradition from Britain.
A lawyer for Wellesley did not immediately respond to a request for comment.
Stephen Burton, 60, another Briton charged with running the fraud, is being held at the same Brooklyn jail. He was extradited from Morocco to face the same charges, and pleaded not guilty in December 2023.
Both defendants face up to 20 years in prison if convicted.
Prosecutors said that from June 2017 to February 2019, Wellesley and Burton convinced victims to invest $99.4 million of loans brokered by their company Bordeaux Cellars, with interest payments coming from the wine collectors.
Top stories
Swipe. Select. Stay informed.
Singapore ST will have Govt's 'full confidence and support' in its mission: PM Wong
Singapore ST will aim to become an indispensable partner to S'pore's communities: Editor Jaime Ho
Singapore Wishes for ST beyond 180: Odes to its enduring role in the Singapore story
Singapore Heartbeats & Headlines: ST's 180-year legacy comes to life in immersive exhibition
Singapore Trusted news, smarter experience with new Straits Times website and app
Singapore Community space Stranger Conversations blossoms as 'library of human stories' and life experiences
Singapore Man who killed 5-year-old daughter gets life sentence after he appeals against 35-year jail term
Singapore Judge declines to void alleged sham marriage in S'pore, says it is for Parliament to decide
The men allegedly told victims 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.
But prosecutors said Bordeaux Cellars actually controlled thousands fewer bottles than the loan documents showed, including just 217 bottles in March 2018.
Prosecutors said the defendants used loan proceeds to pay interest to some investors, or for personal expenses.
The scheme collapsed when victims stopped receiving interest payments, prosecutors said.
The case is US v Burton et al, U.S. District Court, Eastern District of New York, No. 22-cr-00079. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
a minute ago
- Straits Times
Japan rice prices double, raising pressure on PM Ishiba
Find out what's new on ST website and app. Tokyo - Rice prices in Japan soared 99.2 per cent in June year-on-year, official data showed July 18, piling further pressure on Prime Minister Shigeru Ishiba ahead of elections this weekend. The price of the grain already rocketed 101 percent year-on-year in May, having jumped 98.4 per cent in April and more than 92.5 per cent in March. Overall, Japan's core inflation rate slowed to 3.3 per cent in June from 3.7 per cent in May, the data from the internal affairs ministry showed. The reading, which excludes volatile fresh food prices, was slightly below market expectations of 3.4 per cent. Excluding energy and also fresh food, consumer prices rose 3.4 per cent, compared with 3.3 per cent in May. Public support for Mr Ishiba's administration has tumbled to its lowest level since he took office in October, partly because of frustration over the cost of living. One of the main sources of anger has been inflation and in particular the surging cost of rice, as well as scandals within the ruling party. The 68-year-old leader's coalition was deprived of a majority in the powerful lower house in October. It was the worst election result in 15 years for the Liberal Democratic Party (LDP), which has governed Japan almost continuously since 1955. Opinion polls ahead of July 20's election suggest the ruling coalition may lose its majority in the upper house as well. This could force Mr Ishiba to resign after less than a year in office. Tariff pressure He is under additional pressure to reach a trade deal with the United States before new tariffs of 25 per cent take effect on Aug 1. Japan's important auto imports into the world's biggest economy are already subject to painful levies, as are steel and aluminium. US President Donald Trump wants to get Japanese firms to manufacture more in the United States, and Tokyo to buy more US goods – notably gas and oil, cars and rice – to reduce the US$70 billion (S$90 billion) trade deficit with the Asian powerhouse. Mr Ishiba, who has sent his trade envoy Ryosei Akazawa to Washington seven times to try and broker a deal, was due to host US Treasury Secretary Scott Bessent on July 18. The Bank of Japan has been tightening monetary policy since last year as inflation crept up but worries about the impact of US tariffs on the world's number four economy has forced it to take a slower approach. Factors behind the rising price of rice include shortages due to an intensely hot and dry summer two years ago that damaged harvests nationwide. Since then some traders have been hoarding rice in a bid to boost their profits down the line, experts say. The issue was made worse by panic buying in 2024 prompted by a government warning about a potential 'megaquake' that did not strike. The government has taken the rare step of releasing its emergency stockpile since February, which it typically only ever did during disasters. AFP
Straits Times
a minute ago
- Straits Times
Japan voters see little hope for tariff reprieve in car maker Mazda's hometown
Find out what's new on ST website and app. Employees work on the assembly line at Nanjo Auto Interior, a manufacturer of inside door panels and other parts for Mazda Motor, in Akitakata, Japan, on July 14. HIROSHIMA, Japan - When car maker Mazda sneezes, everyone catches a cold, say people in its hometown of Hiroshima in western Japan, but these days, auto parts maker Yuji Yamaguchi fears a deep chill is on the way. 'If Mazda builds fewer cars, our orders will drop,' said Mr Yamaguchi, whose 110-year-old firm, Nanjo Auto Interior, has almost 1,000 employees making door panels and other parts for the automaker, which accounts for more than 90 per cent of its sales. 'The key thing is whether we can remain profitable with lower volumes.' The economic engine of Hiroshima, a manufacturing hub 800km southwest of Tokyo, Mazda faces US tariffs of 25 per cent on automobiles, a dispiriting prospect for an electorate already battling inflation and a weak economy. Japan votes on July 20 in an upper house election that looks set to weaken the grip on power of Prime Minister Shigeru Ishiba, who has failed to win a tariff reprieve from the United States, its closest ally and a crucial trade partner. 'I have no expectations for the Japanese government anymore,' said Mr Yamaguchi, a great-grandson of Mazda founder Jujiro Matsuda. 'I'm past frustration and have just resigned myself to things.' As people in Hiroshima and other auto manufacturing regions, brace for the inevitable fall-out from tariffs, Mr Yamaguchi said he had little hope the government could turn the tide. President Donald Trump has given no sign of relenting on his tariffs, and has even hinted at raising those against Japan. Mazda, which saw US sales fall 18.6 per cent in May on the year and by 6.5 per cent in June, is one of the Japanese car makers most exposed to US tariffs. Imports bring in the bulk of Mazda's American sales, but the importance of the wider industry for Japan is almost impossible to overstate. After Japan ceded global leadership in chips and consumer electronics, its auto industry has grown to make up about 28 per cent of the roughly US$145 billion (S$186 billion) worth of goods shipped to the United States in 2024. There are more than 68,000 companies in Japan's auto supply chain, a July survey by research firm Teikoku Data Bank showed, and the JAMA industry group says they employ 5.6 million people, or about 8 per cent of the labour force. 'A supply chain is hard to rebuild once broken,' said Mr Hideki Tsuchikawa, research head at Teikoku Databank's branch in Hiroshima, which his firm estimates is home to more than 2,000 auto suppliers. 'Automobiles are a core national industry. Government support is essential.' The tariffs could cost Mazda and other smaller Japanese automakers US market share lost to bigger rivals, said Ms Julie Boote, an autos analyst at Pelham Smithers Associates in London. Mazda, headquartered in Hiroshima, where it has assembly plants, has so far declined to give a full-year earnings outlook, citing the uncertainty of tariffs. In a statement, Mazda told Reuters its top priority was to protect suppliers, dealers and employees as it looked to overcome the tariff impact. It anticipated significant impact in the short term, the company said, adding it was taking all possible steps, such as asking for government countermeasures. 'No overtime, no drinking' It is hard to say whether the uncertainty will further deepen voter anger over time, or how much opposition parties will be able to chip away at Mr Ishiba's support as they look to tap into voter discontent. For the auto industry there seems to be no recourse except to return to a well-worn playbook of cost-cutting perfected during Japan's years of stop-start economic growth. No overtime means no extra money for drinking, said Mr Koji Sasaki, the 54-year-old owner of a bar in the town of Fuchu close to Mazda's headquarters, where the automaker's employees usually form the bulk of customers. Their numbers have dropped in recent months, with some regulars apologising for making fewer visits, he said. Drinking in Mr Sasaki's bar on a recent July evening was company veteran Toshiyuki Shimizu, 45, who said Mazda had already cut back on overtime and business travel for employees. 'We used to bring junior staff along on business trips, but now I often go alone,' said Mr Akira Ichigi, a 32-year-old Mazda colleague, adding that the limits denied junior employees valuable experience acquired on such trips. Mazda has set up a tariff strategy team that was meeting each week in Hiroshima, said one company insider, speaking on condition of anonymity. But Mazda faced constraints in finding ways to tackle the tariffs from a labour shortage in the United States, that kept it from boosting capacity at its sole plant there, operated with Toyota, the source added. Mazda said overtime cuts and a business travel review were part of its drive to cut 100 billion yen in costs. Essential travel continued, but it was evaluating whether accompanying staff were necessary, it said. The company set up a team to monitor tariffs and was working with suppliers and dealers, it said, adding that key to increasing supply to the US market were its efforts to tackle labour shortages and strengthen the supply chain. For now, parts supplier Yamaguchi said he was not considering specific steps to counter the tariffs. 'In business, we need to have long-term vision,' he said, likening the moment to the Covid-19 pandemic, when his company posted a loss in 2020 but returned to profit the next year by working to boost efficiency rather than cutting costs. 'If we don't invest in 2025, we might miss opportunities.' REUTERS
Straits Times
31 minutes ago
- Straits Times
Stephen Colbert's late-night show on CBS to end in May 2026
Find out what's new on ST website and app. The Late Show With Stephen Colbert on CBS will end in May 2026 after the upcoming broadcast season. LOS ANGELES - The Late Show With Stephen Colbert on CBS will end in May 2026 after the upcoming broadcast season, the network said on July 17 . The show is ending and Colbert will not be replaced, CBS executives said. 'This is purely a financial decision against a challenging backdrop in late night. It is not related in any way to the show's performance, content or other matters happening at Paramount,' the executives said in a statement. CBS parent company Paramount is seeking approval from the US Federal Communications Commission for a US$8.4-billion (S$10.7 billion) merger with Skydance Media. I n July, Paramount agreed to settle a lawsuit filed by President Donald Trump over an interview with former Vice-President Kamala Harris, his Democratic challenger in the 2024 presidential race, that CBS's '60 Minutes' broadcast in October 2024 . Colbert, a frequent critic of Mr Trump on his show, told his audience on July 17 that he was informed of the show's cancellation the night before. Senator Adam Schiff of California, a Democrat, was a guest during the show on July 17 . Top stories Swipe. Select. Stay informed. World Trump diagnosed with vein condition causing leg swelling, White House says World Trump was diagnosed with chronic venous insufficiency. What is it? Singapore Driverless bus in Sentosa gets green light to run without safety officer in first for S'pore Asia Malaysia's King appoints Wan Ahmad Farid as new Chief Justice Singapore SPCA appoints Walter Leong as new executive director World US strikes destroyed only one of three Iranian nuclear sites, says new report Opinion Is your child getting drawn to drugs? Don't look away and don't give up Business Granddaughter of late Indonesian tycoon pays $25 million for Singapore bungalow 'If Paramount and CBS ended the Late Show for political reasons, the public deserves to know. And deserves better,' Mr Schiff wrote on X. REUTERS
