ICE New York investigation, alongside partners, leads to extradition of United Kingdom citizen to face charges in $99 million wine fraud

NEW YORK – An investigation by ICE Homeland Security Investigations New York, in coordination with federal partners, has resulted in the extradition of a United Kingdom citizen to face charges related to an alleged $99 million wine fraud scheme. James Wellesley, age 56, was arraigned following his extradition from the UK, where he was arrested in 2022.

In 2022, Wellesley, along with his co-defendant Stephen Burton, were charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy in connection with a scheme perpetrated through Bordeaux Cellars, a company he and Burton operated.

HSI New York Special Agent in Charge Ricky J. Patel, United States Attorney for the Eastern District of New York Joseph Nocella, Jr., and Assistant Director in Charge, FBI New York Field Office Christopher G. Raia, announced Wellesley’s arraignment.

“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,” stated HSI New York Special Agent in Charge Patel. “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 U.S,” stated U.S. Attorney Nocella. “We will not rest in our efforts to seek justice for victims of fraud.”

“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,” stated FBI New York Assistant Director in Charge Raia. “Today’s arraignment signals to all criminals that the FBI will practice the same resolve in bringing perpetrators to justice.”

Wellesley was ordered detained pending trial. Burton, 58, was extradited from Morocco in 2023 and is currently pending trial.

The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives of Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at, among other places, investor conferences held in the U.S. and overseas. The defendants claimed to investors that Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors that would be fully collateralized by high-value collections of wine.

The defendants promised that investors would receive regular interest payments from the borrowers, and that Bordeaux Cellars would keep custody of the wine, securing the loans while the loans were outstanding. As alleged, these representations were lies, the “high-net-worth wine collectors” did not actually exist, and Bordeaux Cellars did not maintain custody of the wine purportedly securing the loans. Instead, the defendants used incoming loan proceeds to make fraudulent interest payments to investors and for their own personal expenses, resulting in $99 million dollars’ worth of misdirected funds.

The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants face up to 20 years in prison.

Source: U.S. Immigration and Customs Enforcement (ICE.gov)