Two British Men Admit Guilt in Massive $99 Million Wine Ponzi Scheme

James Wellesley and Stephen Burton, two British men, pleaded guilty to involvement in a $99.4 million Ponzi scheme that exploited unsuspecting investors through false claims of high-interest loans backed by rare wines. In a court appearance on October 7, 2025, Wellesley admitted to wire fraud conspiracy as part of their elaborate fraud that promised returns from lending to wealthy individuals needing quick capital, supposedly secured by high-value collectible wines that did not actually exist.

The operation began about a decade ago when Wellesley and Burton presented themselves as executives of London and Hong Kong-based Bordeaux Cellars at various investor conferences. They attracted backers with promises of 12% quarterly returns, drawing in those who believed their loans were safe due to the supposed collateral of valuable wines stored in controlled environments. Wellesley was noted at one conference discussing how property developers were in need of cash and subsequently highlighted the supposed safeguards of their loans connected to assets that would easily sell.

However, behind this façade, the pair was fabricating shell companies to channel investor money into their own pockets. Although some initial payments were made to investors, they derived from new deposits rather than any real profits. Over time, as inquiries regarding the firms’ legitimacy increased, payment ceased altogether in 2019.

After his arrest in February 2019, Burton was found in possession of fake passports, luxury watches, and significant cash. He served a brief prison term for money laundering and was eventually released, continuing to evade U.S. authorities until apprehended in Morocco in 2022. Conversely, Wellesley was arrested in the U.K. in 2022 and extradited to the U.S. in July 2025. As the legal proceedings unfolded, Burton accepted a plea agreement, admitting to not having the extensive inventory of fine wines they claimed, revealing that only a mere 217 bottles were actually held.

The consequences are severe for both men. Wellesley faces a sentencing hearing with potential prison time between 10 and 12.5 years, while Burton is expected to be sentenced to 24 to 29 years and has agreed to forfeit $26 million stemming from the scheme.

For more details on this case, refer to the original source on Wine Spectator.

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