Though Charles Ponzi has been dead for over 75 years, the infamous Ponzi scheme named after him lives on. On July 11, James Wellesley was arraigned in Federal Court in New York City and pleaded not guilty to wire fraud and money laundering charges linked to a $99 million Ponzi scheme involving wine investment fraud.
The FBI alleges that Wellesley and his co-defendant, Stephen Burton, operated the scam from June 2017 to February 2019. They convinced investors that their company, Bordeaux Cellars, brokered loans to wealthy wine collectors, secured by valuable wines like Domaine de la Romanee-Conti and Chateau Lafleur. They promised annual returns of 48% through interest payments, some of which were paid early on using funds from new investors — a hallmark of Ponzi schemes.
In reality, no such loans existed, and no valuable wine collateral was held by Bordeaux Cellars. When interest payments stopped, investors became suspicious, prompting an FBI investigation. Burton was arrested in Morocco and extradited to the U.S. in 2023, while Wellesley was arrested in the UK and extradited in July 2025.
FBI agent Ricky Patel said, “James Wellesley and his co-conspirator are accused of masterminding a nearly $100 million international fraud scheme exploiting unsuspecting investors for selfish enrichment.”
Investor Lessons:
Never invest in opportunities you don’t understand.
Vet individuals and companies thoroughly; Bordeaux Cellars had no legitimate business history and was not SEC-registered.
Verify claims independently — investors should have checked the wine inventory, storage, insurance, and ownership.
Be skeptical of unusually high returns; the promised 48% annual return was a major red flag.
If convicted, Wellesley and Burton face up to 20 years in prison.
