Rudy kurniawan & global wine auction fraud thread (merged)

There is additional news on the Bordeaux Cellars case. Last week Andrew Fuller (a/k/a James Wellesley and other aliases) was quietly extradited from the UK to Brooklyn New York to face the outstanding criminal charges against him. Fuller is being held at the Metropolitan Detention Center in Brooklyn.

Fuller was arraigned on Friday, July 11, 2025 before United States Magistrate Judge Robert M. Levy. Fuller, along with his co-defendant Stephen Burton, is charged with wire fraud conspiracy, wire fraud and money laundering conspiracy in connection with the Bordeaux Cellars Ponzi scheme which allegedly resulted in $99 million in investment losses in the United States, United Kingdom and other countries. Andrew Fuller, who is represented by a federal public defender, pled not guilty to all charges. If convicted on all charges, each defendant could be sentenced to up to 20 years in prison.

The Department of Justice issued a press release in conjunction with the extradition and arraignment. https://www.justice.gov/usao-edny/pr/united-kingdom-citizen-extradited-face-charges-99-million-wine-fraud-0 Joseph Nocella, Jr., the United States Attorney for the Eastern District of New York, stated that “Today’s arraignment sends a message to all perpetrators of global fraud schemes that my Office will work tirelessly to ensure they answer for crimes committed in the United States. We will not rest in our efforts to seek justice for victims of fraud.”

The level of effort by the FBI and the Department of Justice to bring both Burton and Fuller to the United States for trial is really impressive. Burton and Fuller, who are both previously convicted felons, both fled the U.K. in an attempt to avoid prosecution. After being caught, Fuller vigorously resisted extradition to the United States.

Assistant United States Attorney Benjamin Weintraub, from the Eastern District of New York’s Business and Securities Fraud Section, is in charge of the prosecution. The next hearing in the case is scheduled for July 24, 2025. A motion to change Stephen Burton’s plea (which has been continued many times) is scheduled for that date.

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Date?

Thanks Victor – I will correct that.

A hearing was held on Thursday July 24, 2025 before United States District Court judge Pamela K. Chen. Defendant Stephen Burton appeared at the hearing along with his counsel. After being sworn by the Court, Mr. Burden changed his plea from not guilty on all charges to a guilty plea as to count one (wire fraud conspiracy) and count four (money laundering conspiracy). The court’s docket references a plea agreement between Mr. Burton and the government, which was marked as Exhibit 1, but which is not included with the docket at this point.

The plea agreement likely drops the charges against Burton with respect to counts 3 and 4 (for separate wire fraud counts) in return for recommended sentencing by the government and testimony against co-defendant Andrew Fuller a/k/a James Wellesley. Burton’s sentencing is scheduled for January 6, 2026 at 10:00 a.m.

The court also held a status conference with respect to the case against Andrew Fuller. Mr. Fuller, who did not appear, was represented by Michael Weil, a federal public defender. After discussion with the court, the court scheduled a further status conference for September 3, 2025 at 10 a.m.

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In the last week, multiple sources, including Fortune magazine’s website, have reported that Andrew James Fuller, a/k/a James Wellesley, is a former UK solicitor who was disbarred. That is incorrect.

Quoting from paragraph 10 of the 2019 class action complaint which was filed in London SMPI BORDEAUX SPV 3 LLC v. STEPHEN BURTON et al:

On 8 September 1997, Mr Wellesley (under the name Andrew Fuller) was found by the Solicitors’ Disciplinary Tribunal (“SDT”) to be guilty of “abus[ing] the trust placed in him by his employers” in committing the “cynical and calculated theft of clients’ funds”. The facts as contained within the SDT’s findings are, in summary, that between 1989 and 1995 whilst employed as a solicitors’ clerk, Mr. Wellesley made improper withdrawals from client accounts totaling £127,212.65 and paid the funds into various bank and building society accounts held in his own name and/or the name of his wife. The SDT ordered that Mr. Wellesley was not to be employed in connection with the practice of a solicitor in future without the permission of the Law Society, and made an order for costs against him in the fixed sum of £2,755.20.

I have a copy of the findings of the Solicitors Disciplinary Tribunal. Between 1989 and July 1995 Andrew Fuller was employed as a clerk in the probate and trust department of a London solicitors firm. The published opinion verifies that Fuller was not a solicitor himself. Fuller stole and concealed the theft of at least £127,212.65 from six different probate and trust clients of the law firm.

As previously reported in this thread in 2022, Andrew James Fuller was convicted in the UK in 2013 for defrauding a British bank out of 3.5 million Pounds ($4.65 million). Fuller obtained a £5.7 million loan from a UK bank, which was to be used to redevelop a piece of property into 18 luxury flats/condominiums. The project got into trouble, and Fuller absconded with £3.5 million of the loan proceeds and fled the country. He went to Singapore using a fake passport identifying him as “Andrew Templar.” He continued to live in Singapore, and apparently began participating in Bordeaux Cellars using the alias “James Anderson” in 2009.

Fuller was caught sneaking back to London to visit his wife Fiona Fuller at a home they owned in Bath in 2012. He was arrested, charged and pled guilty to three charges: (1) forgery – making a false instrument, with the intention to induce somebody to accept it as genuine; (2) fraud/attempted fraud; and (3) possession of false identity documents with improper intention. He was sentenced to six years and three months in prison. He was released from prison in 2016 and apparently resumed work with Bordeaux Cellars as its Chief Financial Officer and Chief Operating Officer.

In December of 2018, when the Bordeaux Cellars Ponzi scheme was disintegrating, Fuller once again fled the UK and went to live “in Asia”. According to the recent findings of the UK High Court which rejected his appeal of the extradition order, this time Fuller brought his family with him. Fuller and his family lived “in Asia for a few months” and then moved to Ireland. According to the High Court opinion, Fuller returned to the UK in February 2020. He arrested on February 4, 2022. The US immediately requested his extradition.

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The Wyfe of Bath!

Sorry, it just popped into my head.

-Al

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That Fuller guys seems like such a nice guy. Or is it chap? :scream:

“Wellesley, the operational anchor of the company and chief financial officer, ran the books, taking a three-year hiatus from 2013 to 2016 to serve prison time for a separate $7.7 million fraud”.

Umm, how to phrase this, have to use doublespeak:

The investors did doodoo diligence.

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Todd:

Yes, that is the Fortune article. It is frustrating that one article mis-reported that Fuller/Wellesley was a disbarred attorney and then it was repeated within 72 hours in several other blogs or articles.

A WARNING ABOUT SUSPECT BOTTLES IN HERITAGE AUCTION’S “SHOWCASE” ONLINE AUCTION

This is a warning about four single bottle lots of very old Bordeaux, ranging from 76 to 155 years old, that are being offered in Heritage Auction’s “Showcase” online auction, which ends on Aug 21st at 6:00 PM Central Daylight Time. https://wine.ha.com/c/search/results.zx?dept=4313&mode=live&auction_name=24182&ic=Items-OpenAuctions-Open-BrowseViewLots-071713 The four lots in question are a purported 1870 Chateau Mouton Rothschild (Lot 31009), 1874 Chateau Mouton Rothschild (Lot 31010), 1945 Chateau Lafite Rothschild (Lot 31002) and 1949 Chateau Vieux Chateau Certan (Lot 31018). These four bottles came from a single source, which was described to me in an email from Heritage on August 14, 2021 as follows: “The ancients from a Texas pro were purchased through natural distribution channels. He was an exec at a prominent importer/distributor and purchased the wines through a designated negociant.”

Three of the four of the “ancient” lots bear importer strip labels from American Wine & Importing Company of Dallas Texas, a company which existed from 1967 until approximately 2004. Two of the three strip labels list the fluid quantity as one pint, 8 fluid ounces, which means that the original bottles were sold prior to September 1976, when the BATF regulations requiring the use of metric volume measurements went into effect.

For three of the four bottles - - the 1870 Mouton, 1874 Mouton and 1945 Chateau Lafite - - the catalog claims that the bottles were “reconditioned by chateau.” No date for the alleged reconditioning is provided as to the two Mouton bottles. The 1870 bottle bears the modern long maroon-colored capsules introduced on the chateau’s 150th anniversary vintage (2003) – released in 2006. The 1945 Chateau Lafite is listed in the Heritage electronic catalog as having been “reconditioned by chateau 1989.” But there is apparently no labeling on the bottles to confirm that the bottles were reconditioned by the chateau, and the consignor has apparently provided no proof of chateau reconditioning. I have repeatedly asked for such proof from Heritage since August 13, but Heritage has failed and refused to provide it. Similarly, there is nothing in the catalog to indicate that any of the capsules on these bottles have been cut in order to verify the printed content of the cork.

The fourth bottle – 1949 Vieux Chateau Certan – has not been recorked. It might be authentic, but it contains a notable labeling discrepancy from the chateau’s other bottles from the 1949 vintage (and the vintages from 1942 to 1961) – the word Récolte and the year 1949 appear on the same line. (I have sent an inquiry to the chateau in the hope of obtaining an answer). The short pink capsule on the bottle shows clear evidence of prior removal by someone, but there is no indication that the capsule was removed by Heritage Auctions or that the vintage and labeling on the cork has been verified.

1870 Mouton Rothschild


The 1870 Mouton Rothschild has a relatively new, pristine label. There is no importer strip label on this bottle . At least based upon the catalog description, and the silence from Heritage in response to my inquiries, apparently there is no back label or strip label indicating that this bottle was recorked/reconditioned by the chateau. (The absence of a label indicating the volume and alcohol content technically make it illegal to sell this bottle.)

The content and printing on the label appear to be an accurate reproduction of the original label for the 1870 vintage. The wine bears a long maroon-colored Chateau Mouton Rothschild capsule, which was initially used on the 150th anniversary vintage (2003), which was physically released in 2006. The catalog description states: “reconditioned by chateau, excellent color.”

Unlike Lafite Rothschild, Mouton Rothschild did not offer US recorking services. In order to get bottles of Mouton Rothschild recorked by the chateau, you had to bring the bottles to the chateau. I am told that Mouton was very selective as to the customers for whom rebouchage would be performed. Assuming this bottle was “reconditioned” by the chateau, based upon the long maroon chateau label, that reconditioning would have had to take place in 2006 or thereafter – apparently after American Wine & Importing was out of business.

Based on the catalog description (and from what is visible in the one photo supplied on the Heritage website), the capsule has not been cut to verify the contents of the cork and the claimed rebouchage.

Under these circumstances, in my opinion there is no credible evidence that this is a bottle of 1870 Mouton Rothschild which has been “reconditioned by the chateau” as claimed in the catalog. Without proof that this bottle was reconditioned by the chateau and that the vintage is 1870 as claimed, this bottle must be viewed as a suspect for a refilled bottle.

1874 Mouton Rothschild


The 1874 Mouton Rothschild has an older, partially faded label. The fonts on that label appear to match the original one in use on the 1874 vintage Mouton labels. There is a long solid red capsule on this wine which, from its appearance, did NOT originate from Chateau Mouton Rothschild.

This bottle has an American Wines & Importing Company capsule which lists the fluid content as 750 ml (i.e. post-September 1976 strip label). That strip label indicates the bottle was obtained from Whitwhams in the UK. The cork appears to be protruding slightly protruding cork, which is acknowledged in the catalog description, which states: “ts, bsl, wrl, spc, reconditioned by chateau, excellent color”

As with the 1870 Mouton, there is no visible evidence that this bottle was reconditioned by the chateau and there is apparently no back label or strip label so stating. Similarly, Heritage has repeatedly declined to answer my question as to whether the consignor provided any proof that this bottle was “reconditioned by [the] chateau” as claimed. Moreover, the plain red capsule on this bottle appears totally inconsistent with such a statement.

Based on the catalog description (and from what is visible in the one photo supplied on the Heritage website), the capsule has not been cut to verify the vintage date and the contents of the cork and the claimed rebouchage.

In my opinion, whatever may be in this bottle, it is not 1874 Mouton Rothschild that was “reconditioned by [the] chateau” as claimed.

1945 Lafite Rothschild


The 1945 Lafite Rothschild offered by Heritage has the expected bottle glass with the vintage embossed. The label appears to be correct. The capsule (the short red and black capsule used by Lafite for the 1955-1980 vintages), is different than the plain-red capsules that were on the 1945 vintage when it was originally released. In this case, the claim in the catalog was that the bottle was “reconditioned by [the] chateau [in] 1989.”

However, there is nothing on the label, and nothing in the catalog description, to confirm that the bottle was recorked/reconditioned by the chateau as claimed. All bottles recorked by Chateau Lafite (a process discontinued in 2012) bear a cork which indicates the year of recorking on the top and a strip label is glued onto the back of the bottle which indicates that the bottle was recorked by the cellarmaster of the chateau and the year it occurred. Here is a link to an article published in the Washington Post on May 27, 1992 which contains a lengthy description of the complete recorking process utilized by Chateau Lafite Rothschild. https://www.washingtonpost.com/archive/lifestyle/food/1992/05/27/a-corker-of-a-deal-from-lafite/5738a0f7-a4e3-4b84-b755-0c431f2fed33/

As stated in the Washington Post article, Lafite’s cellarmaster, Robert Revelle, “had brought with him a batch of specially prepared corks with the vintage on the side, and marked on top with a small circle around a note reading “recorked by the Maitre de Chai of Lafite in 1992.” The article also states: “As a final step, a small label stating that the wine was recorked by the Maitre de Chai of Lafite was glued to the bottle’s back.”

This is the same process which was used by Chateau Lafite for many years. I have examples of the back labels from the Lafite recorking process from 1987 and 1990 – bracketing the reconditioning in 1989 claimed in the catalog. See below.


(In addition, I would note that where the original label was replaced by a replica label supplied by Lafite as part of the recorking process, those labels were stamped with a small “Etiquette de Rebouchage” on the main label.)

I have repeatedly asked Heritage’s wine department director, Frank Martell, whether there is any strip label on the 1945 Lafite to document that the bottle was rebouchaged by Chateau Lafite. He has repeatedly failed to answer my question and stated that he refuses to engage in what he calls “dialog” about the bottles.

According to the electronic catalog description, none of the capsules on the bottles have been cut to verify whether they have vintage chateau corks and indications of rebouchage by the chateau.

In my opinion, in the absence of proof of the existence of the required strip label to confirm that the bottle was reconditioned by Chateau Lafite, or cutting the capsule to verify that the rebouchage cork indicating that this bottle was recorked by Lafite in 1989, this bottle is not what it is claimed to be – 1945 Chateau Lafite “reconditioned by [the] chateau [in] 1989.”

1949 Chateau Vieux Chateau Certan

The 1949 Chateau Vieux Certan listed in the Heritage catalog is not claimed to be a bottle recorked/reconditioned by the chateau. The bottle has short pink capsule, as it should, but in this instance it is obvious from the photo that someone has removed the capsule and pushed it back on. Based on the absence of any comment in the online catalog, it does not appear that anyone attempted to examine the cork on this bottle.

While most of the label is consistent with the Chateau labeling of its 1949 vintage (including the slightly off-center printing of the various lines of text), the one potential problem is that this bottle has the word Récolte and the year (1949) on the same line. This does not match the other 1949 exemplars I have and it does not match any of the exemplars of Chateau labels from 1942 to 1961. On the vintages from 1942 to 1961, the word Récolte either appears above the vintage year, or it does not appear at all.


1949 Vieux Chateau Certan (WineSearcher)1948 Vieux Chateau Certan (WineSearcher)

While there is a significant question about the label on the Heritage 1949 Vieux Chateau Certan bottle, it may or may not be authentic.

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The auction house sloppiness never ends, does it?

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Nice post, Don.

Glad you are willing to “dialogue” with us.

For the 49 VCC, were all labels applied to bottles at the Chateau?

I’m trying to understand how some labels (of apparently genuine bottles) had the term
Recolte but not all bottles.

And then when questioned, the silence and inaction kinda answers the questions.

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Karl:

All of the Vieux Chateau Certan wines during WW2 and thereafter were bottled at the chateau (as shown on the photos of the bottles I posted.) I also noticed the year to year labeling inconsistency, even among the bottles furnished by the Chateau for the two big vertical tastings. In some years the label said 1er Grand Cru and in others just Grand Cru. As you stated, while most of the vintages included the word Recolte in small print above the vintage, not all of the vintages had the word Recolte on the label.

Here is another photo of the labels of the 1945, 1947 and 1948 from one of the Thienpont family verticals held in 2022 and 2024.

The 1945 and 1947 vintages don’t have the word Recolte at all. For 1948 through as late as 1962, Recolte is back on the labels (though I am missing a few vintages. It appears that 1962 was the last vintage for Recolte on the labels.

I have been in contact with the Chateau to ask questions. Alexandre Thienpont is the expert on this and he is unfortunately out until next week. Hopefully we’ll get some more information then.

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So I did some digging and it appears these wines likely originated from the collection of Anthony LaBarba, a Texas wine importer who passed away in 2003.

One detail that stands out is a someone on Cellartracker with the username “LaBarba,” who has listed several of the same bottles. The photos on Cellartracker seem to perfectly match the bottles currently up for auction, and in one image, you can even make out what looks like “Mary LaBarba” written on a tag.

This is where things get particularly interesting. According to Anthony’s obituary, there is mention of an 1870 bottle being served at a special dinner. It’s also worth noting that 1985 marked the height of Hardy Rodenstock’s notoriety, in December of that year, he sold one of the infamous 1787 Jefferson bottles at Christie’s.

These details, combined with Don’s concerns, raise legitimate questions about the authenticity of these wines. For bottles this rare, the Châteaux should have clear records of any recorking and ideally thorough provenance documentation. FWIW, I think the capsule on the 1870 Mouton is much more ~1970’s than 2006 (see below) but I share Don’s general concerns.

Given all of this, the responsible course of action for Heritage and Frank Martell would be to withdraw the lots for now, fully disclose what is known about their provenance, and enlist an independent expert like Maureen to inspect the bottles. Only once this is done would it be reasonable for these bottles to be sold.

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Ryan:

Thanks for the additional detective work. Very interesting indeed. According to the Dallas Morning News obituary, Anthony James (“Tony”) LaBarba, died on August 10, 2003. Tony LaBarba was survived by his son, James Anthony Labarba (still resident in Dallas county today at age 75), who had succeeded his father Tony as the President of American Wine & Importing Company in 1989, and “was President until November 1992 at which time the company was acquired by Glazer Wholesale Distributors.” Tony was also survived by three grandsons (Anthony, Nicholas, and Alex LaBarba – the sons of James Anthony LaBarba). One of the above, is likely the consignor.

I found two items particularly interesting in the obituary:

“In 1985, Tony purchased a bottle of 1870 Chateau Mouton Rothschild for a then record price of $38,000. He hosted a dinner at the Mansion on Turtle Creek for 52 guests at $1,000 per plate. Among the guest were Robert Mondavi and Baroness Phillip de Rothschild, and Stanley Marcus. It was a rousing success!”

The other item was that Tony’s father, who sold produce and wine in Dallas, had regularly purchased California wines in 55 gallon barrels beginning in 1936 and then brought them to Dallas where they were apparently bottled and sold. “Tony actually drove 18 wheel trucks to the vineyards to pick up barrels of wines.”

With respect to the dating of the capsule on the 1870 Mouton, the capsule on the 1870 Mouton appears to be maroon, consistent with the modern capsules. The capsule on the bottle of 1975 Mouton you included in your post is fire-engine red color.

The maroon colored capsules were first used on the 2003 vintage for the 150th anniversary (first sold in 2006). But the chateau returned to the fire engine red capsules the following vintage and did not again use the maroon color for capsules on the initial release of a vintage until some years later.


Assuming that I am correct, this would mean that the 1870 Mouton was recorked and recapsuled sometime after Tony LaBarba’s death in August 2003 and possibly several years later.

I also find some irony in the fact that Tony LaBarba paid $38,000 for a single bottle of 1870 Mouton Rothschild in 1985 and forty years later, Heritage is offering a bottle of what is allegedly the same wine with an $8,000.00 reserve – so far (thankfully) with no bidders.

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Thanks!!

Meoimi?