He Turned Wine Into a $99 Million Fraud — How Did He Get Away With It?

Stephen Burton has pleaded not guilty in fine wine fraud case. Photo: LinkedIn via news.sky.com

New York — October 8, 2025 - A British man extradited from the UK pleaded guilty Tuesday in a Brooklyn federal court to his role in a nearly $100 million international wine fraud that preyed on investors seeking high-end bottle loans, authorities announced. James Wellesley, 59, admitted to conspiracy to commit wire fraud before U.S. District Judge Pamela Chen, facing up to 20 years in prison when sentenced in January 2026.

The scheme, which defrauded victims of $99.4 million between 2013 and 2020, involved promising lucrative loans backed by rare wines like Romanée-Conti and Château Lafite Rothschild, only to funnel funds into a Ponzi operation that collapsed amid the COVID-19 pandemic. Wellesley, who operated under aliases including Andrew Fuller, worked with co-conspirator Rudy Kurniawan—a notorious wine counterfeiter convicted in 2013—to solicit investments from unwitting wine dealers and collectors worldwide.

Prosecutors detailed how Wellesley and his partners posed as legitimate financiers, offering loans at 10-15% interest secured by "irreplaceable" vintages stored in temperature-controlled vaults. In reality, the wines were often nonexistent or misrepresented, with proceeds used to pay earlier investors and fund lavish lifestyles. The U.S. Attorney's Office for the Eastern District of New York recovered $12 million in assets, including luxury watches and properties, but victims—many small business owners—lost life savings.

Wellesley was arrested in London in June 2024 following a U.S. indictment and extradited in July 2025 after fighting removal. Kurniawan, serving a 10-year sentence for forgery, is a cooperating witness whose testimony helped build the case. "This fraud exploited the allure of fine wine to steal from the unsuspecting," said Acting U.S. Attorney Nina Gale in a statement.

During the 20-minute hearing, Wellesley, dressed in a gray suit and appearing via video from a federal detention center, offered no statement beyond his plea. Judge Chen accepted the guilty plea, scheduling sentencing for January 13. Under federal guidelines, Wellesley faces 135-168 months, potentially reduced for cooperation.

Victim impact statements, submitted by over 50 affected parties, described financial ruin: One California dealer lost $2.5 million intended for his family's retirement. The case, investigated by the FBI's art crime team, highlights vulnerabilities in the $400 billion global wine market, where fraud costs $1-2 billion annually.

Wellesley's attorney, Alan Dershowitz, called the plea "strategic" to avoid trial, vowing to seek leniency based on his client's remorse. The UK Serious Fraud Office, which probed parallel charges, deferred to U.S. jurisdiction.

As sentencing approaches, the fraud serves as a cautionary tale for collectors: Even the nectar of the gods can sour into deception.