James Wellesley Faces $99M Wine Fraud Charges

Brooklyn federal court witnessed the arraignment of James Wellesley, a United Kingdom citizen, following his extradition from the UK and arrest in 2022. Wellesley stood accused alongside Stephen Burton for their alleged role in a $99 million wine fraud scheme.

The duo is charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy. Their operation at Bordeaux Cellars promised investors high-value wine stockpile and a clientele of ‘high-net-worth wine collectors,’ but authorities claim the whole venture was a deception to swindle investors out of $99 million.

Wellesley’s arraignment today took place before Judge Robert M. Levy, with his co-defendant Stephen Burton, extradited from Morocco in 2023, facing trial. Both Wellesley and Burton are ordered detained pending their trials.

United States Attorney Joseph Nocella, Jr., Assistant Director Christopher G. Raia of the FBI New York Field Office, and Special Agent in Charge Ricky J. Patel of HSI New York emphasized that they will pursue justice for victims of global fraud schemes without resting. They highlighted the resolve to bring perpetrators to justice in such transnational criminal endeavors.

The indictment reveals an elaborate scheme where investors were promised loans secured by high-value wine collections that never existed. The defendants are accused of using incoming loan proceeds for fraudulent interest payments and personal expenses, siphoning off millions.

Charges are allegations, with the defendants presumed innocent until proven guilty. If convicted, they face up to 20 years in prison. The Justice Department’s Office of International Affairs thanks UK authorities for their assistance in securing Wellesley’s extradition.