James Wellesley

What the public record shows

James Wellesley (who also used the names “Andrew Fuller” and “Andrew Templar”) co-operated Bordeaux Cellars, a fine-wine investment scheme. He pleaded guilty to wire fraud conspiracy and was sentenced to 10 years in prison for a fraud of roughly $99 million. His co-defendant, Stephen Burton, pleaded guilty to wire fraud and money- laundering conspiracy. This is a criminal conviction — not an allegation.

The scheme — “backed by” wine that barely existed

According to the U.S. Attorney’s Office for the Eastern District of New York:

• Bordeaux Cellars solicited investors with high-yield loans supposedly secured by rare, collectible wine — the wine was the “collateral” that made the loans feel safe.
• In reality, the operation never controlled more than 217 bottles, despite claiming to hold about 25,000 bottles from prestigious producers.
• It was a Ponzi scheme — the “interest” was paid from new investor money, not real wine-backed lending.

Why we rate this 1 / 10 — Avoid

A guilty plea and a 10-year sentence in a classic alternative-asset fraud. Wine, whiskey casks, art, and collectibles are favored fraud vehicles precisely because they’re exotic, illiquid, and hard for an ordinary investor to verify — so the “collateral” can be almost entirely fictional.

Red flags this case teaches

• “Asset-backed” claims you can’t independently verify. Demand proof the assets exist, in the quantity claimed, held by an independent custodian in your name.
• Exotic collateral + high fixed yields is a recurring combination in fraud.
• Alternative assets have no FDIC/SIPC safety net — the diligence burden is entirely yours.

Bottom line

Convicted and sentenced to 10 years. “Secured by rare wine” is only as real as the wine — and here there were 217 bottles behind a $99 million story. Verify the collateral, or pass.

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