Latest news with #Ponzischeme
The Sun
3 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."
Telegraph
3 days ago
- Business
- Telegraph
British man extradited to US appears in NYC court over $99m wine fraud
A British man appeared in a New York court on Friday after being extradited to the US over his alleged part in a $99 million (£73 million) wine fraud. James Wellesley, 58, pleaded not guilty to defrauding investors in a complex scheme that entailed duping them into lending money to a cohort of non-existent high-net-worth wine collectors. He and fellow Briton Stephen Burton, 60, his alleged co-conspirator, allegedly posed as directors of Bordeaux Cellars, a company which supposedly brokered the loans. They promoted their scheme, which ran from at least June 2017 to February 2019, according to the United States Attorney's office, at investment conferences all over the world, including in the US. The Ponzi-style scheme involved persuading investors to lend money to the wine collectors. In return, they were promised regular interest payments. These loans were secured against a stockpile of expensive wine, which included Domaine de la Romanée-Conti, in Burgundy, which is listed for sale online for more than $17,000 per bottle, and Château Lafleur in Bordeaux, which is listed for sale at more than $5,000. Not only did the wine collectors not exist, but nor did the wine, the US Attorney's Office website alleges. Mr Wellesley and Mr Burton are accused of using the loans to make fraudulent payments to investors and the rest for themselves. Mr Wellesley is said to have had several aliases, including Andrew Fuller and Andrew Templar. '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,' said Christopher Raia, assistant director in charge of the FBI New York office. Ricky Patel, a Homeland Security special agent, added: '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.' The two men have been charged with wire fraud conspiracy, wire fraud and money laundering conspiracy. Mr Burton, who denied the charges, was arrested in Morocco in 2022, while trying to enter the country on a false Zimbabwean passport and extradited to the US in December 2023. He is set to change his plea at a court hearing scheduled for July 24. If convicted, the pair each face up to 20 years in prison. '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.'
