United States Attorney's Office for the Eastern District of New York

07/11/2025 | Press release | Distributed by Public on 07/11/2025 13:47

United Kingdom Citizen Extradited to Face Charges in $99 Million Wine Fraud

Press Release

United Kingdom Citizen Extradited to Face Charges in $99 Million Wine Fraud

Friday, July 11, 2025
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For Immediate Release
U.S. Attorney's Office, Eastern District of New York
Defendant James Wellesley Arrives from the United Kingdom to Face Prosecution

Earlier today, in federal court in Brooklyn, James Wellesley was arraigned following his extradition from the United Kingdom (UK), where he was arrested in 2022. In 2022, Wellesley, along with his co-defendant Stephen Burton, was 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. Wellesley was arraigned today before United States Magistrate Judge Robert M. Levy. Burton was extradited from Morocco in 2023 and is currently pending trial. Wellesley was ordered detained pending trial.

Joseph Nocella, Jr., United States Attorney for the Eastern District of New York; Christopher G. Raia, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Ricky J. Patel, Special Agent in Charge, Homeland Security Investigations, New York (HSI New York) announced Burton's arraignment.

"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 United States," stated United States 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."

"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."

The indictment alleges that from at least June 2017 and continuing through February of 2019, the defendants posed as executives Bordeaux Cellars. The defendants solicited investors, including residents of the Eastern District of New York, at, among other places, investor conferences held in the United States 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.

The Justice Department's Office of International Affairs (OIA) provided significant assistance in securing Wellesley's arrest and extradition from the UK. This Office thanks UK authorities for their assistance in this matter.

The government's case is being handled by the Office's Business and Securities Fraud Section. Assistant United States Attorney Benjamin Weintraub is in charge of the prosecution.

The Defendants:

STEPHEN BURTON
Age: 58
United Kingdom

JAMES WELLESLEY
Age: 56
United Kingdom

E.D.N.Y. Docket No. 22-CR-79 (PKC)

Contact

John Marzulli
Denise Taylor
United States Attorney's Office
(718) 254-6323

Updated July 11, 2025
Topic
Financial Fraud
Component
USAO - New York, Eastern
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