British Man Arrested for $99 Million Money Laundering Scheme

A British man was taken into custody on Friday at Brooklyn Federal Court, facing serious charges linked to a large-scale money laundering operation. This scheme allegedly funneled $99 million through a fraudulent wine business.

James Wellesley, 56, was arrested after being extradited from the UK, where he and his co-defendant, Stephen Burton, 58, were already detained in 2022.

The two men face multiple charges, including conspiracy, wire fraud, and money laundering, all believed to be tied to their operation involving Wellaux Cellars.

The indictment claims that Wellesley and Burton acted as executives for Bordeaux Cellars from approximately June 2017 to February 2019. They reportedly targeted both U.S. and international investors, luring them at various conferences.

According to the court documents, Wellesley and Burton led investors to believe that their loans were secured by a valuable wine collection from wealthy collectors. They allegedly promised regular interest payments and claimed that Bordeaux Cellars would safeguard the wine while loans were active. However, prosecutors suggested that the supposed “High Networth Wine Collector” was a fabrication and that Bordeaux Cellars didn’t possess any actual wines securing those loans.

Instead of using incoming loan funds as promised, they allegedly diverted the money to cover interest payments to investors, resulting in misuse of the funds for personal expenses.

A statement from U.S. Attorney Joseph Nosera emphasized the seriousness of the arrest, stating it serves as a warning to those involved in global fraud schemes. He reaffirmed their commitment to justice for victims of such crimes.

Ricky Patel, a special agent at HSI New York, accused the duo of defrauding collectors out of hundreds of thousands of dollars. He characterized their actions as a significant international fraud scheme, exploiting unsuspecting investors for their personal gain.

Burton was extradited from Morocco in 2023 and is currently awaiting trial, whereas Wellesley was detained after the trial commenced. If found guilty, both men could face up to 20 years in prison.