Fake Passports, Money Laundering Charges and More: Man Accused of Swindling the Wealthy Out of $100 Million in Wine Scam Could Face 20 Years in Prison
Two men face charges of up to 20 years in prison after allegedly defrauding investors out of $100 million. (AP Photo/Seth Wenig)
On Saturday, the Daily Mail reported that Stephen Burton, a British man currently accused of being the brains behind the Bordeaux Cellars scam is facing criminal charges of up to 20 years in prison in the U.S. Burton, along with his colleague, James Wellesley, is accused of defrauding wealthy investors out of $100 million.
Burton’s company, Bordeaux Cellars, allegedly brokered loans between investors and wealthy wine collectors. Bordeaux Cellars promised these investors large returns on apparently non-existent wines.
Burton and Wellesley were accused of using the money from investors to make payments for themselves and to make fraudulent interest payments to other investors, in a sort of wine ponzi scheme.
The Drinks Business reports that Burton and Wellesley referenced cult wines, such as the Napa producer, Screaming Eagle, to get the high-net-worth individuals on board.
In 2022, Burton was arrested in Morocco while using a fake Zimbabwean passport. Both face charges of wire fraud, wire fraud conspiracy and money laundering conspiracy through the courts.
Burton was extradited on Friday from Morocco to New York, and arraigned in a Brooklyn federal court on Saturday according to the Daily Mail. He pleaded not guilty to the charges and is to appear in court in the United States in January 2024.
Wellesley is a British citizen and currently awaits extradition to the United Kingdom. Whether or not he has a lawyer overseas remains to be seen.
Employees who worked for Bordeaux Wine Cellars, such as Chief Financial Officer Andrew Fuller, claimed that the scheme was entirely Burton’s and maintained they were completely unaware of what was happening.
Fuller was extradited to the U.D. in December 2022, according to The Drinks Business.
“With the successful extradition of Burton to the Eastern District of New York, he will now taste justice for the fine wines scheme alleged in the indictment,” U.S. Attorney Breon Peace said, according to the Daily Mail.
Burton’s lawyer claimed all the criminal charges were allegations, and that they would “defend them vigorously.”
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