An investigation by ICE Homeland Security Investigations (HSI) New York, in collaboration with federal partners, has led to the extradition of a United Kingdom citizen to face charges related to an alleged $99 million wine fraud scheme. James Wellesley, 56, was arraigned following his extradition from the UK, where he was arrested in 2022.
In 2022, Wellesley and his co-defendant Stephen Burton were charged with wire fraud conspiracy, wire fraud, and money laundering conspiracy linked to a scheme conducted through Bordeaux Cellars, a company they operated.
HSI New York Special Agent in Charge Ricky J. Patel announced Wellesley’s arraignment alongside United States Attorney for the Eastern District of New York Joseph Nocella Jr., and Assistant Director in Charge of the FBI New York Field Office Christopher G. Raia.
“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," 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... 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," 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 was extradited from Morocco in 2023 and is currently awaiting trial.
The indictment alleges that from at least June 2017 through February 2019, the defendants posed as executives of Bordeaux Cellars. They solicited investors at various locations including investor conferences held both domestically and internationally. The defendants claimed Bordeaux Cellars brokered loans between investors and high-net-worth wine collectors collateralized by valuable wine collections.
The defendants promised regular interest payments secured by custody of wine while loans were outstanding. However, these claims were false; no such collectors existed nor did Bordeaux Cellars maintain custody over any wines securing loans. Instead, incoming loan proceeds funded fraudulent interest payments or personal expenses resulting in misdirected funds totaling $99 million.
The charges are allegations; defendants are presumed innocent until proven guilty. If convicted they face up to 20 years imprisonment.
