A British citizen pleaded not guilty on Friday (July 11) in New York to charges tied to a nearly $100 million investment fraud scheme involving fake loans supposedly secured by valuable

wine collections.

James Wellesley, 58 — who also used the alias Andrew Fuller — appeared before U.S. Magistrate Judge Robert Levy in Brooklyn to enter his plea on charges of wire fraud, wire fraud conspiracy, and money laundering conspiracy. Following the hearing, Wellesley was ordered held without bail at Brooklyn’s Metropolitan Detention Center. He had previously fought extradition from the U.K. A lawyer representing Wellesley did not immediately issue a comment.

Wellesley is accused alongside fellow Briton Stephen Burton, 60, who was extradited from Morocco and is facing the same charges. Burton pleaded not guilty in December 2023. If convicted, both men could face up to 20 years in prison.

A Fraud Built on Imaginary Wine

According to U.S. prosecutors, between June 2017 and February 2019, Wellesley and Burton persuaded investors to contribute approximately $99.4 million in loans brokered by their company, Bordeaux Cellars. The loans were marketed as being backed by valuable wine collections from wealthy collectors, with the promise of steady interest payments.

The alleged scheme involved claims that the loans were secured by an inventory of over 25,000 high-end wine bottles, including rare vintages from renowned estates like Domaine de la Romanée-Conti in Burgundy and Château Lafleur in Bordeaux. In reality, prosecutors say, Bordeaux Cellars controlled far fewer bottles than they claimed — just 217 bottles as of March 2018.

Prosecutors allege that Wellesley and Burton used the incoming funds to pay interest to earlier investors and cover personal expenses. The fraud unraveled when the flow of interest payments stopped, revealing the scheme.

The case is being prosecuted as U.S. v. Burton et al, in the U.S. District Court for the Eastern District of New York, No. 22-cr-00079. Photo by A.Savin, Wikimedia commons.