Stephen Burton, a British citizen who was indicted in 2022 on fraud charges related to a $99 million fine wine investing scheme, has been extradited from Morocco and is expected to be arraigned in United States federal court on Saturday.
Burton, along with his partner James Wellesley, has been accused by the Department of Justice of wire fraud conspiracy, wire fraud and money laundering conspiracy related to a plot he concocted through Bordeaux Cellars, a company he operated.
According to the indictment filed in the Eastern District of New York in 2022, Burton and Wellesley—often using aliases—posed as executives at Bordeaux Cellars and would solicit investments from attendees at investor conferences in the United States and abroad. Burton would tell investors that his company brokered loans with collectors of high-value fine wines that would be collateralized by the collections, which Bordeaux would retain until the loans were paid off.
The charges against Burton, however, claim that Bordeaux Cellars was little more than a Ponzi scheme. The expensive wine collections did not exist; therefore, Bordeaux was not in the custody of these collections to purportedly secure these loans. The so-called interest payments from borrowers that Burton promised investors were paid with the additional loan proceeds he pulled in via the fraudulent scheme.
“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,” United States Attorney Peace said in a press release. “This prosecution sends a message to all perpetrators of global fraud that you can run from law enforcement, but not forever.”
Burton was extradited on Friday from Morocco, where he was arrested in 2022 after entering the country by using a false passport. Wellesley is currently in the United Kingdom, where he remains in the extradition process.
The case is being handled by United States Magistrate Judge Taryn A. Merkl, who is expected to arraign Burton on Saturday in a Brooklyn court. He faces up to 20 years in prison if convicted.
