Rudy kurniawan & global wine auction fraud thread (merged)

Jefery, I’m sorry to hear of your experience. I’ve dealt with Michael Davis for decades, and specifically with HDH for over 10 years. I’ve had nothing but superlative customer service from them over the years. I hope that you can work out your dispute with them.

I did not realize that HDH had an ownership change. Was this recent? Who are the new owners? I am aware that founder Paul Hart retired a few years ago, if that is the ownership change to which you refer.

There’s one way to find out! File suit and see what happens.

Document everything like a bat out of heck.

Jefery-

You’ve made a strong argument based on the label, primarily, that HDH should have been suspicious. The one part I don’t think supports your argument is the fact that you paid half of what the wine went for at Acker. (You didn’t say how either price compared to other bottles at auction in recent years. That would be crucial to know.)

I can think of two counter-arguments to your reliance on the price you paid:

  1. Auction prices vary a lot, and people regularly pick up bottles at prices well below what they’ve sold for in other auctions.

  2. The low price at HDH might suggest that other bidders were suspicious, implying that you should have been, too.

It’s ironic if the price was high at Acker. By now, one would hope there would be an Acker discount.

A lower price does not allow misrepresentation.

But it reduces damage.

There’s another aspect of this whole mess that has bothered me, namely ‘pollution’ of the corpus of tasting notes on old wines. How do we know which notes are based on the real McCoy and which on Cuvee Kurniawan, or Reserve Rodenstock or … I guess “amazingly fresh for its age … “ is an obvious red flag , but in general how do I know what’s genuine and what isn’t.

Indeed.

Another twist here: Jay McInerney, the recipient of Jef’s gift, attended a number of dinners with Rudy, and gave publicity in his WSJ columns to Acker events even years after the Ponsot bottles tipped off the world to the symbiotic relationship between Acker and Rudy. And Jef, because of his wine collecting, has been featured in articles and a documentary about Rudy’s scam.

Maybe I missed it, but he didn’t say he PAID half what it sold for at Acker, just that HDH offered it at half that price. I assume that means opening bid, and the hammer price could have been higher.

Ah, Mr. Levy

I never thought you would have the nerve to post anything on this thread.

For those of you who don’t recall who Jef Levy is, Jef was a participant in the “12 Angry Men” dinners and he was known as “Hollywood Jef.” This is the same Jef Levy that attended the Ponsot auction at Acker on April 25, 2008 and screamed obscenities when John Kapon announced that the Ponsot bottles were being withdrawn at the request of the Domaine. When you last saw Mr. Levy, it was in Sour Grapes. He was the individual wearing ultra-dark sunglasses at all times, even when being interviewed in his home. (I won’t comment on Mr. Levy’s ‘condition’ throughout the movie, but if you saw the movie and remember the individual you can judge for yourself.) Jef got way too much air time in the movie because he claimed to be a long-time friend of Rudy Kurniawan, claimed Rudy Kurniwan wasn’t guilty even after he was convicted, and defended Rudy to the very end. As one of the people commenting on Sour Grapes on Wine Spectator stated: “Funniest parts are the victims…Jeff Levy especially comes off as a total buffoon.” This is also the same Jef Levy who previously claimed to me, to Allen Meadows and to others that he was defrauded by Rudy Kurniawan who sold him counterfeit wines both directly and through Acker. He then refused to cooperate with the FBI and former Assistant US Attorney Jason Hernandez when they sought information from him. Jefrey Levy is generally referred to as the “bad Jef Levy,” to distinguish him LA’s other Jeff Leve (Jeff spelled with two Fs), the rhone and bordeaux wine critic.

Now, let’s correct a few of the alleged “facts” in Mr. Levy’s post:

First of all, Hart Davis Hart is still owned by the same individuals (Michael Davis and Paul Hart) and it is run by Paul Hart and Ben Nelson. Allan Frischman has the been the wine authenticator at HDH for many years. Allan Frischman is simply the best in the auction business - period. And it’s been that way for a long time.

Second, Allan Frischman did not testify at the Kurniawan trial. But he did submit an affidavit after Rudy was convicted during the penalty phase of the proceedings regarding the lack of authenticity of the wines sold to one victim.

Third, some of the claims made here are objectively false and misleading, in particular the claim that “The Cork was not stamped.” You posted essentially identical text on your own website along with photos in April of 2020 https://acmefoodwine.com/2020/04/10/ext-junior-prosecutor-jason-hernandez-in-an-email-to-me-i-represent-hdh-hdh-will-not-accept-service-of-process-by-email-as-i-have-explained-previously-your-claim-against-hdh-is-meritless-and-it/ The post on your website included three photos which clearly show the cork was stamped with the Leroy branding, included the crown symbol on the opposite side of the cork, and it included some numbers that I cannot read on the photos you posted which appear above the stylized brand name Leroy. Some of the photos show what appears to be a full bottle of 1955 Leroy Chambertin – one of which is is re-posted below.

Fourth, and most significantly, you omitted some critical details. The single bottle you apparently bought, Lot 3249 in the HDH June 2019 auction, was described as “Label slightly scuff marked; capsule torn.” You failed to explain whether you asked any questions about the bottle or asked for any photos before the auction. If not, why not? Why wasn’t that “torn capsule” a proverbial red flag for you? You claim to have tasted the 1955 Chambertin a dozen times (let me guess, with Rudy, of course!), so did you examine the cork when you received the wine with the torn capsule? Knowing that your great friend Rudy Kurniawan had sold counterfeit 1955 Leroy Chambertin, surely you examined the cork before opening the wine?

But there are other problems with your story as well. Martine Saunier did not begin importing Leroy wines until 1986. Consolidated Distilled Products was an authorized importer of DRC wines from 1966 until approximately 1976. Wilson-Daniels became a US importer for DRC wines with the 1978 vintage and, after the 1978 vintage, was the exclusive US importer for DRC wines. Prior to the falling out between Madame Bize-Leroy and Aubert de Villaine, most of the authorized US importers for DRC wines also imported Leroy wines. This includes Domaine Chandon (who imported burgundies during the 1970s) and for one or two vintages an import company jointly owned by Leroy and De Villaine. [Amended: Wilson-Daniels also imported and distributed Leroy wines from 1978 until Leroy changed her importer to Martine’s Wines in 1986.] I do not have direct evidence one way or another as to whether Consolidated Distilled Products also imported Leroy wines prior to 1986. But Allan Frischman probably does because it was a Chicago-based company. Moreover, the photographs you posted on your website show the strip label stating that the quantity of wine in the bottle is 730 ml. That is something which uniquely dates to the period around 1974-1977 for US imports. If you look at photos of French burgundies imported from that period, including DRC 1976s, most say 730 ml on the strip labels. By the 1978 vintage, everything again said 750 ml on the labels. I am confident that Martine Saunier, who I respect greatly, did not tell you anything about importation of Leroy wines into the US before 1986, because there were multiple importers for Leroy prior to her becoming the exclusive importer in 1986. I also know Allan Frischman well enough to know that he would not have offered a Leroy wine with a Consolidated Distilled Products strip label on it, unless he was confident that that they had imported Leroy wines.

As for your claim that “dozens of experts I have shown the photos of the bottle and cork have written to me, based on the photos, that the label itself is extremely suspect” – please tell me who some of these dozens of experts are? Surely you aren’t including any of the people in New York that you used to hang out with drinking wines with Rudy as being among those “experts.” Personally, I can count the “experts” on authentication on the fingers of my two hands. And please tell me why these alleged “experts” think the label is suspect. On the left below is the bottle you are complaining about from the photo posted on your own website. On the right is a bottle of 1955 Leroy Chambertin from the cellar of my friend John Tilson, who I’ve known for almost 40 years. John was the founder and principal author of the Underground Wine Journal. The bottle in question was purchased more than 30 years ago and was consumed at a dinner with another friend of mine in November 2015. Below that is a 1955 Mazis Chambertin from Leroy imported by Domaine Chandon (note the 730 ml tag on the strip label) purchased in the 1970s and consumed at the same dinner.

Bottle You Purchased from HDH - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Bottle from John Tilson’s Cellar

So, yes, by all means please tell me who your “dozens of experts” are and why they think the label on the wine you bought is “extremely suspect.” And tell me why it is that you waited until AFTER you opened and drank the wine to consult with these “dozens of experts”?

Nice one Don

Interesting as always, Don, and I am suspicious of anybody so close to Kapon. And also, the movie did not show him in a great light.

That being said, I would like some clarification of the HDH response.

I am assuming you can return unopened bottles, if something strikes you as suspicious when you actually get to handle it. If not, I do have a serious problem with that.

Timeshares in a bottle!

A good friend who brought a bottle of 1955 Leroy Chambertin purchased from Martine to a November 2007 dinner I attended reminded me today that Wilson-Daniels also imported and distributed Leroy wines from 1978 until Leroy changed her importer to Martine’s Wines. Accordingly, I have amended my earlier post above.

Mark: I am trying to get some further clarification from HDH. The language in their published terms and conditions is very terse. HDH, like all auction houses, has a general policy against returns and they all declare that auction sales are final. I assume that HDH would permit a return/refund where a customer found that a wine, when received, did not conform to the original catalog description or where the buyer presented competent evidence that the wine sold was not authentic (so long as the bottle hasn’t been opened and consumed). But I don’t think any auction house would permit a purchaser to unilaterally declare that they are “suspicious” about authenticity and to then return the wine for a refund. Nor would any auction house in the world permit the purchaser to drink the wine, then declare it is counterfeit, and obtain a refund.

Personal experience, received a 6 bottle lot, one bottle was in terrible condition with fills base neck for a 2010 white burgundy that was described in the catalog. They refunded that bottle.

I did buy some 1982 Chave from Zachys, and was able to return them immediately. I don’t mind poor labels; these were totally illegible.

I wonder if they misspelled ‘Rudy’ here [tease.gif]
Screen Shot 2020-05-12 at 7.03.10 PM.jpg

The more I dig into the claim about the alleged counterfeit 1955 Chambertin, the more discrepancies I find in Mr. Levy’s story.

The Acker sticker was NOT removed by HDH. For example, Mr. Levy states that: “What’s even more interesting is that the ACKER auction sticker had been removed when I received the wine (I was only able to discover that the wine was originally purchased from Acker through private investigation), and through the admission of lawyer Jason Hernandez himself, in writing.” This appears to be absolutely false. If you look on the HDH website for this auction, they had three photos of this lot – the bottle from the front, an enlarged version of the primary label and the back of the bottle and back label (which also appears correct.) 1955 Chambertin, Maison Leroy | Hart Davis Hart Auction Co.
The photo of the back of the bottle very clearly contains the Acker sticker.

[Note: I cropped these two photos from their very large size to make them usable here]

It is also clear that, directly contrary to Mr. Levy’s statement, the photos that he took of the bottle show the same sticker is on the back of the bottle and is visible on three of the photos Mr. Levy posted here: https://acmefoodwine.com/2020/04/10/ext-junior-prosecutor-jason-hernandez-in-an-email-to-me-i-represent-hdh-hdh-will-not-accept-service-of-process-by-email-as-i-have-explained-previously-your-claim-against-hdh-is-meritless-and-it/

Here is one of those photos from Levy’s blog site in which the Acker sticker is very clearly visible through the bottle:

Note the round label shape on the rear of the bottle

Mr. Levy did not retain the allegedly counterfeit bottle. While Mr. Levy claims that the bottle is counterfeit, demands a refund, and states that he has filed a lawsuit against HDH based on the counterfeit, he also admits that he doesn’t have the allegedly counterfeit bottle. He attempted to obtain information from Maureen Downey that he could use to allege that the bottle was counterfeit, but in a series of Facebook posts admitted that they had thrown away or lost the bottle.

Mr. Levy is a licensed California attorney. He claims to have filed a small claims lawsuit in California. The lawsuit has apparently not been served on HDH. How do you file or maintain a lawsuit alleging the sale of a counterfeit bottle of wine where you have thrown away or lost the alleged evidence which is the basis for the claim?

More Inconsistent Facts I communicated with Martine Saunier myself. Martine confirmed that Martine’s Wines became the US importer for Leroy in 1986 and actually began importing in 1987. She also confirmed that prior to 1986 various DRC importers, including Wilson-Daniels, also imported the Leroy wines and that they were grey marketed as well. Based on the label and strip label, both of which say 73 cl/ml, it is clear that the bottle was purportedly imported in the 1976 to 1978 time period, long before Martine’s Wines was the exclusive US importer for Leroy.

On his blog, Mr. Levy has a separate post about spending a week in New York to celebrate Jay McInernry’s 65th birthday. ONE INSANE WEEK IN NYC JAN 2020 WITH THE USUAL SUSPECTS FOR JAY-MACS 65TH BIRTHDAY - ACME FOOD & WINE While the blog about the allegedly counterfeit bottle states that “I bought this bottle as a birthday gift for my friend Jay McInerney” and claims that Levy sent it to New York three months in advance of the dinner so that it would settle, I am mystified by the fact that Levy’s blog about the week in New York to celebrate McInernry’s 65th birthday, which posts the dinner menus for each evening, most with the wines to be consumed listed, doesn’t mention the 1955 Leroy Chambertin. There are no references to that bottle on the menus. There are no photos of the bottle in the McInerney birthday blog. This strikes me as bizarre given Mr. Levy’s posted claim.

Without additional information about the original corks on the Leroy 1955s (which I am trying to obtain from some collector friends), I cannot reach a final judgment on the issue of whether the bottle in question might have been refilled. However, there is nothing on the face of the bottle or the capsule (at least based on the photographs) that objectively suggests that bottle was not an authentic 1955 Leroy Chambertin. The best evidence, of course, would be to have an appropriate expert physically examine the labeling, glass, capsule etc. That’s been rendered impossible here, because the bottle was thrown away. Moreover, here, the the person who is making the claim the wine is counterfeit has made clearly false factual statements and greatly embellished others. He also has made completely unsupported and wild accusations that the former Assistant US Attorney who prosecuted Rudy Kurniawan is engaged in committing fraud to conceal the sale of counterfeit wines. Jason Hernandez is someone I worked with and respect a great deal. Mr. Levy has also accused Allan Frischman, the best auction wine authenticator in the business, of having conspired with the former AUSA to intentionally defraud the claimant. That is beyond absurd.

Given the accusations made and the fact that the bottle was lost or thrown away, Mr. Levy is very likely to get some body parts handed back to him by the Judge if he really proceeds to prosecute this claim once the courts are again open for business.

Jeff, here’s the economic harm.

At least some premium is attached to drinking a specific wine.

Say someone rented, a famous historical picture painted by George Washington, were given a fake, never found out, and returned it after the rental period was over. Even if they were satisfied by the fake (maybe Washington wasn’t much of a painter), I think all would agree the renter has an economic loss, though maybe not a physical or financial one

The renter paid for that fact to be true about the painting he rented. Maybe you or I wouldn’t, but believe me, the market would and does, and that’s a far better indicator of economic loss or value than any nebulous consideration of the purchaser’s “satisfaction.”

Years, and it is years, reading this thread, things I’m still shocked by…

This thread is still running strong
Don’s continued wealth of knowledge on aged Burg, Holy Shizzle. Not a surprise, yet more that you realize what you really don’t know
anyone bidding and not doing homework on things with costs competing with college tuition

wow