UK citizen James Wellesley appeared in a Brooklyn federal court docket this month after being extradited over an alleged ‘$99m wine fraud scheme’, mentioned the US District Lawyer’s Workplace for the Japanese District of New York.
Wellesley entered a plea of not responsible to costs of wire fraud, wire fraud conspiracy and cash laundering conspiracy, in response to Reuters, which reported his age as 58.
He was detained pending trial, mentioned the US Lawyer’s Workplace. He joins co-defendant and fellow UK citizen Stephen Burton, 60, who beforehand additionally pleaded not responsible and is awaiting trial after being extradited from Morocco in 2023.
Expenses relate to their alleged operation of an organization named Bordeaux Cellars to run an funding mortgage scheme backed by a stockpile of high-value wine that didn’t exist.
‘James Wellesley and his co-conspirator are accused of masterminding their practically $100m worldwide fraud scheme that exploited the unsuspecting public, together with New Yorkers, for their very own egocentric enrichment,’ mentioned Ricky J. Patel, particular agent in cost, Homeland Safety Investigations New York.
‘As alleged, the defendants claimed Bordeaux Cellars boasted a high-value wine stockpile and a clientele of “high-net-worth wine collectors” – and in flip profited handsomely – all whereas they swindled buyers out of a whole lot of 1000’s of {dollars}, if no more,’ Patel mentioned.
It’s alleged that, from at the very least June 2017 to February 2019, the pair brokered loans between buyers and wine collectors, claiming that the high-value bottles could be held as collateral.
Nonetheless, the defendants are accused of utilizing incoming mortgage proceeds to make fraudulent curiosity funds to buyers and for their very own private bills, ‘leading to $99m million {dollars}’ price of misdirected funds’.
If convicted, they may resist 20 years in jail. The Lawyer’s Workplace mentioned the fees stay allegations and that the defendants are presumed harmless until confirmed responsible.
