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A British businessman accused of defrauding investors out of $99 million using valuable wine collections as collateral has won the chance to challenge his extradition to the U.S.

Briton $99M Wine Fraud Bid: High Court Ruling

Judge Judith Farbey allowed Andrew Fuller, also known as James Wellesley, to challenge his extradition on two grounds. She expressed concerns at the High Court that the lower judge who approved his extradition may have misdirected himself regarding the risk of suicide for Fuller and his family.

"I have real concerns that the district judge asked and answered the wrong question," Judge Farbey said. "It is arguable that he … misdirected himself."

Alleged $99M Wine Fraud Scheme

The U.S. alleges that Fuller and his alleged co-conspirator, Stephen Burton, defrauded dozens of investors between June 2017 and February 2019 through their companies, Hong Kong-based Bordeaux Cellars Ltd. and Bordeaux Cellars London Ltd. These companies supposedly brokered loans using high-value wine collections as collateral, although they did not actually have custody of the collections. The U.S. asserts these companies were Ponzi schemes.

Fuller is charged with two counts of wire fraud and a charge of money laundering in the Eastern District of New York.

Briton $99M Wine Fraud Bid: Defense Arguments

Fuller, appearing via video link from Wandsworth prison in London, denies the allegations, claiming ignorance of Burton's fraudulent activities.

Clare Montgomery KC of Matrix Chambers, Fuller's counsel, argued that District Judge John Zani wrongly assessed the potential harm extradition could pose to Fuller's mental health and his family's well-being, particularly the significant risk of suicide if he is extradited.

Montgomery also contended that Judge Zani inaccurately determined the majority of the harm occurred in the U.S., whereas most victims reside outside the U.S., making England the more appropriate jurisdiction for any prosecution.

"The loss in the U.S. is less than $20 million," Montgomery said. "It is at best 20-25% of the total loss."

She emphasized High Court litigation brought against Bordeaux Wines by investors, arguing Judge Zani should have considered this when deciding the preferred jurisdiction.

"There is no doubt that a substantial part of Mr. Fuller's alleged offending took place in the U.K.," Montgomery said. "The claimants turned to the U.K. legal system for justice. They certainly did not turn to the U.S. legal system."

Montgomery noted that Burton pleaded guilty to money laundering offenses in a London court and was sentenced to just under four years imprisonment in 2019.

U.S. Position

Ben Lloyd of 6KBW, representing the U.S., urged Judge Farbey to uphold the extradition decision, citing the global distribution of victims and arguing no single jurisdiction should be preferred.

"Whilst there was criminality in England, that did not alter the fact that most of the loss or harm resulting from the extradition offenses occurred, or was intended to occur, in the U.S.," Lloyd said in court filings.

Representation

The United States is represented by Ben Lloyd of 6KBW, instructed by the Crown Prosecution Service. Fuller, also known as Wellesley, is represented by Clare Montgomery KC of Matrix Chambers and Graeme Hall of Doughty Street Chambers, instructed by Katy Smart of Sonn Macmillan Walker Ltd.