Wine fraudsters counterfeiting bottles, we have reported on it before. But using wine collections as collateral for loans is another way to get rich. Until you run into the lamp for not paying them back.
Text: Marjolein Schuman | Image: Pixabay
After master forger Rudy Kurniawan, a British man and his associate from 'Bordeaux Cellars' have recently been accused of swindling nearly $100 million. They brokered loans between investors and wealthy wine collectors secured by their wine collections. The investors were told they would benefit from the interest on the loans they provided. But during the trial, which began in January, prosecutors said the rich wine collectors did not exist at all and that Bordeaux Cellars had no control over the wine that secured the loans. Instead, Stephen Burton and James Wellesley used the money to make interest payments to other investors. This Ponzi-like construction starring luxury wines is not new. Hopefully, the promoters will not escape punishment now either, even if they deny the allegations. If convicted, they face up to 20 years in prison for bank fraud, conspiracy and money laundering.
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