Overview

• James Wellesley pleaded not guilty and was ordered detained pending trial during his Brooklyn federal court arraignment on July 11.
• Both he and co-defendant Stephen Burton face allegations of running a $99 million Ponzi-style wine investment fraud through Bordeaux Cellars.
• Prosecutors allege that from June 2017 to February 2019 the defendants claimed loans were secured by non-existent high-value wine collections.
• According to the indictment, incoming investor funds were diverted to fraudulent interest payments and the defendants’ personal expenses.
• Each defendant faces up to 20 years in prison and Burton remains in U.S. custody after his December 2023 extradition from Morocco.