In a stunning turn of events, a British citizen, Stephen Burton, has been extradited to New York and arraigned on federal charges amounting to a staggering $99 million. The charges include wire fraud, wire fraud conspiracy, and money laundering conspiracy, setting the stage for a legal battle that promises to unveil a web of deception.
Briton $99M charges : The Intricate Scheme Unveiled
Burton, who pleaded not guilty, faced the federal magistrate judge on Saturday as the U.S. Attorney’s Office for the Eastern District of New York detailed the complex allegations against him. The charges stem from an elaborate fraud scheme, where Burton and his accomplice, James Wellesley, assumed the roles of wine executives, orchestrating a scheme that claimed to broker investments secured by valuable bottles of wine.
A Web of Deceit: False Identities and Fake Passports
The indictment, dating back to 2020, reveals that Burton and Wellesley, posing as executives of Bordeaux Cellars between 2017 and 2019, utilized false identities such as Andrew Pittman, Robert Allison, and Derek Campbell. Burton, who allegedly claimed to be the CEO of Bordeaux, was arrested in Morocco in 2022 after entering the country with a counterfeit Zimbabwean passport.
Briton $99M charges: “You Can Run, but Not Forever”
U.S. Attorney Breon Peace emphasized the significance of Burton’s extradition, stating, “With the successful extradition of Burton to the Eastern District of New York, he will now taste justice for the fine wines scheme alleged in the indictment.” The message is clear: global fraud perpetrators may elude law enforcement temporarily, but justice remains relentless.
Bordeaux Cellars’ Illusion: Promises, Payments, and Phantom Bottles
According to the indictment, Bordeaux Cellars, portrayed as a pioneering company in fine wine lending, enticed investors with promises of substantial returns for secured loans. However, the FBI discovered that quarterly interest payments ceased in December 2018, leaving investors perplexed. Burton and Wellesley allegedly diverted incoming loan proceeds to make interest payments and fund personal expenses.
Briton $99M charges : Phantom Bottles and Misleading Collateral
Bordeaux Cellars collected loans using over 25,000 bottles of wine as collateral, but records reveal a startling discrepancy. The storage facility, supposedly housing the wine, held a mere 2,262 bottles at most. The indictment highlights a $500,000 loan listing 24 bottles of 1990 Château Lafleur Pomerol as collateral—bottles that seemingly never existed in Bordeaux’s inventory.
The Arrest and the Extravagance: Gold Ingots, Watches, and Cash
Burton’s arrest in the UK in February 2019 painted a picture of extravagance. Authorities found him in possession of gold ingots, coins, expensive watches, 500 lottery tickets, and over £53,000 ($67,000) in cash—a stark contrast to the alleged financial misdeeds that would later unfold.
Briton $99M charges: Extradition Proceedings in the UK
While Burton faces the legal storm in New York, co-defendant James Wellesley remains entangled in extradition proceedings in the UK. Wellesley argues against a fair trial in U.S. courts, setting the stage for another chapter in this gripping legal saga.
