U.K. man accused of $100M wine fraud extradited to U.S.

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A British man accused of swindling investors out of almost $100 million by brokering loans backed by a nonexistent collection of rare wines was extradited to the U.S. to face trial on fraud charges.

James Wellesley, the former chief financial officer of Bordeaux Cellars Ltd. from 2017 to 2019, arrived in New York from the U.K. Thursday, said John Marzulli, a spokesman for Brooklyn U.S. Attorney Joseph Nocella Jr.

Also known as Andrew Fuller, Wellesley entered a not guilty plea on Friday and was ordered held without bail until his next court appearance on July 24. His lawyer, Michael Weil, declined to comment after the arraignment.

Wellesley has previously denied wrongdoing and fought extradition for years. In an appeal hearing in February, his lawyers argued that his wife would be at high risk of suicide if he were sent to the U.S.

Federal prosecutors in Brooklyn claim Wellesley and co-defendant Stephen Burton duped victims, half of whom were US-based, by purporting to broker loans to high-end wine collectors that were collateralized by rare vintages. Investors were allegedly promised regular interest payments from borrowers while Bordeaux Cellars would hold on to collectors’ pledged wine as collateral.

But prosecutors say neither the collectors nor the wine actually existed. Instead, the defendants allegedly used the $99 million collected in the scheme to make fraudulent interest payments to investors as well as for personal expenses.

Burton, Bordeaux Cellars’ founder, was extradited from Morocco to the U.S. in 2023, and court records show he is in plea talks to end the case. In 2019, Burton pleaded guilty to money-laundering in a U.K. court and was sentenced to less than four years in prison.

Both men were charged with wire fraud conspiracy and two counts of wire fraud. Each count carries a maximum sentence of 20 years in prison, though convicted defendants typically get considerably less time.