Latest news with #JamesWellesley
Forbes
3 days ago
- Business
- Forbes
British Citizen Charged With $99 Million Wine Fraud
A police mug shot of Italian-born American swindler Charles Ponzi (1882 - 1949) after his arrest for ... More forgery under the name of Charles Bianchi, Montreal, Canada, 1909. Ponzi later served 14 years in jail in the US after the collapse of his fraudulent investment scheme, whereby early investors were paid from the investments of later investors. Such frauds have since been known as Ponzi schemes. (Photo by Pictorial Parade/) Charles Ponzi has been dead for 76 years but the scam that carries his name still lives on. On July 11th James Wellesley was arraigned and pleaded not guilty in Federal Court in New York City on wire fraud and money laundering charges related to what the FBI is calling a $99 million Ponzi scheme involving wine investment fraud. According to the FBI, James Wellesley and his co-defendant Stephen Burton operated the scam between June of 2017 and February of 2019 during which time they represented to unwary investors that their company, Bordeaux Cellars brokered loans to high-net-worth wine collectors. These loans were purportedly secured by valuable wines such as Domaine de la Romanee-Conti and Chateau Lafleur stored by Bordeaux Cellars as collateral for the loans. Burton and Wellesley allegedly promised their targeted investor victims who they encountered at investment conferences both in the United States and abroad that they would receive returns of 48% annually through regular interest payments and, in fact, some of the early 'investors' did receive some payments, but those payments, as is typical in a Ponzi scheme came from funds obtained from more recent victims of the scam. The truth, according to the FBI, is that there were no loans and Wellesley and Burton held no valuable wine collections as collateral for the non-existent loans. Eventually when interest payments stopped, the scam investor victims in the Ponzi scheme became suspicious and following an investigation by the FBI both Burton and Wellesley were charged with wire fraud and money laundering. Both men fled the country with Burton being arrested in Morocco and extradited to the United States in 2023 and Wellesley arrested in the UK and extradited to the United States in early July 2025. FBI agent Ricky Patel commented on the case, '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." But what are the lessons of this scam for investors? What should these unsuspecting members of the public have done differently that might have prevented themselves from being scammed? First and foremost, no one should ever invest in any investment that they do not truly understand, and no one should ever invest with any person or company without vetting that person or company. No one enjoys doing homework, but if the investors in this scam had done their homework they would have learned that the company Bordeaux Cellars had no significant legitimate business history In addition, if Bordeaux Cellars was a legitimate investment company, it would have been registered with the SEC, which it was not. Further, neither James Wellesley nor Stephen Burton had experience in wine finance. Investors should have asked for an independent verification of the inventory of wines that Wellesley and Burton claimed to be holding as well as storage documentation from the wine storage facility where the wines were claimed to be held. Additionally, they should have confirmed any insurance policies on the rare wines or ownership records of the wines. Finally, a telltale sign of an investment scam is a return that is unusually high, and the 48% annual return promised by Wellesley and Burton certainly should have been a cause for skepticism. If convicted, both Wellesley and Burton face prison sentences of up to 20 years.
Scottish Sun
4 days ago
- Scottish Sun
Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court
He has been detained on charges of wire fraud and money laundering SAV PLONK Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) 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. Sign up for Scottish Sun newsletter Sign up 7 James Wellesley, who allegedly sold vino that didn't exist for £12k Credit: Kent Police 7 The defendants are alleged to have solicited $99 million in investments from residents (picture is not of wine in question) Credit: Bonhams 7 The US Attorney's Office alleges that neither the wine collections not the wine itself actually exist Credit: Linkedin 7 Stephen Burton had been extradited from Morocco in 2023 Credit: Kent Police 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. Shocking moment woman has full blown foot-stamping airport MELTDOWN at check-in 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. 7 The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments 7 The defendants are alleged to have solicited $99 million in investments from residents of New York Credit: Kent Police 7 The Brits are facing charges in a New York court Credit: Alamy 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."
The Irish Sun
4 days ago
- The Irish Sun
Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court
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. Advertisement 7 James Wellesley, who allegedly sold vino that didn't exist for £12k Credit: Kent Police 7 The defendants are alleged to have solicited $99 million in investments from residents (picture is not of wine in question) Credit: Bonhams 7 The US Attorney's Office alleges that neither the wine collections not the wine itself actually exist Credit: Linkedin 7 Stephen Burton had been extradited from Morocco in 2023 Credit: Kent Police 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. Advertisement 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 Advertisement Most read in The Sun Breaking Breaking 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. Shocking moment woman has full blown foot-stamping airport MELTDOWN at check-in 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. Advertisement "Their alleged deceit spread across years and continents." If convicted, the two each face up to 20 years in prison. 7 The alleged Ponzi-style scheme involved getting investors to lend money to the wine collectors in return for regular interest payments 7 The defendants are alleged to have solicited $99 million in investments from residents of New York Credit: Kent Police Advertisement 7 The Brits are facing charges in a New York court Credit: Alamy 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 Advertisement "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." Read more on the Irish Sun "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."
The Sun
4 days ago
- The Sun
Brit charged with £73m wine scam after he allegedly sold vino that didn't exist for £12k as he appears in New York court
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. 7 7 7 7 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. Shocking moment woman has full blown foot-stamping airport MELTDOWN at check-in 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. 7 7 7 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."
Straits Times
4 days ago
- Business
- Straits Times
British man pleads not guilty to nearly $128 million wine fraud
Sign up now: Get ST's newsletters delivered to your inbox Victims invested in loans meant for wealthy wine collectors - except that neither the collectors nor their wine existed. NEW YORK - A British man pleaded not guilty on July 11 in New York to charges he helped mastermind a nearly US$100 million (S$128.02 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 US 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. Top stories Swipe. Select. Stay informed. Singapore ST will have Govt's 'full confidence and support' in its mission: PM Wong Asia Air India crash report shows pilot confusion over engine switch movement Business F&B operators face tougher business landscape amid rising costs and stiff competition Business What's in store for policyholders after GE removes pre-authorisation letters for two private hospitals Multimedia Which floor is this? Chongqing's maze-like environment powers its rise as a megacity Asia 'Woven air': Ancient fabric spun across history makes comeback amid lies and climate change Sport 'A step forward' for golfer Shannon Tan, who makes cut at Evian Championship Business 4 conditions that allow seniors with dementia to sign wills Prosecutors said that from June 2017 to February 2019, Wellesley and Burton convinced victims to invest US$99.4 million of loans brokered by their company Bordeaux Cellars, with interest payments coming from the wine collectors. 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. REUTERS
