Normally, such a high rate of interest meant that the loan would be dicey. Not so, the two men claimed— these loans would be secured with prestigious wines from the borrowers’ cellars, transferred to climate-controlled, secure warehouses overseen by Bordeaux Cellars. “What happens in case of a default?” asked Stephen Burton, the 57-year-old head of the firm, at a 2015 conference in Cancun. “We sell the wine.”
“Lots of customers are property developers who are short of cash,” said Burton’s partner, James Wellesley, 55, at a 2017 conference in Las Vegas. “We only lend against investment grade wine …. We’re dealing with mainly French wines, some of the nicer California wines [such as] Screaming Eagle.”
The promise of 12% interest to the lender on a secured loan in an era of record low interest rates seemed too good to be true. And it was. Burton and Wellesley, CEO and CFO of Bordeaux Cellars, were indicted by a grand jury in a Federal District Court in Brooklyn, N.Y., in March on charges of wire fraud and money laundering. They’re accused of inducing investors to “invest in excess of approximately $99.4 million in term loans purportedly brokered by Bordeaux Cellars,” states the indictment.
This story is from the June 30, 2022 edition of Wine Spectator.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the June 30, 2022 edition of Wine Spectator.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
New Zealand's Success Story - From small beginnings, the country's wines have ascended to global prominence
Since then, New Zealand has become one of the world’s most successful wine nations. Currently there are 102,000 acres planted, and 40 million cases were sold in 2023, according to the New Zealand Winegrowers. The tiny country produces less than 2% of the global wine supply, but it’s the world’s sixth-largest exporter of wine by value. Another thing that’s evolved? The image of corks no longer applies, as most vintners there eschew cork (only about 15% of the wines we review still use the closure).
Wine Is Healthiest Choice for Drinkers - Decades of research has linked light to moderate drinking, especially of wine, to a range of health benefits.
There’s also strong evidence that alcohol consumption raises the risk of certain cancers and that heavy drinking carries serious health risks. But the reasons why moderate drinking seems to be neutral or beneficial for some people and harmful for others remains a mystery.A new study sought to solve that puzzle. Looking at health and lifestyle information for a large population, the researchers found that while any alcohol posed risks for adults with existing health problems from poorer areas, healthy adults from wealthier areas suffered no additional risks from moderate drinking, and those who drink wine with food even enjoyed better health.
In Pursuit of the Perfect Crust
“Dough is always the hardest challenge for any home chef,” explains chef and restaurateur Tony Gemignani. “But it’s the foundation of any great pizza.”
SEAVEY VINEYARD
In Napa’s Conn Valley, a family-run winery marches to its own drum
CALIFORNIA RHONES Show Their Range
RECENT VINTAGES DELIVER EXCELLENT REDS AND WHITES IN AN ARRAY OF STYLES
Tuscany Comes of Age
Anchored by the 2021 vintage, Tuscan reds set a new standard of quality
The Absolute Best Places to Eat and Drink in America
PROFILES OF THE 63 WINE SPECTATOR GRAND AWARD WINNERS ACROSS THE COUNTRY TODAY, AS THE PROGRAM MARKS ITS 44TH YEAR
Events- A Grand Tour for Wine Spectator- a perfect day with an evening of outstanding wines.
A young couple in shorts and festival shirts sped into the ballroom of the New Orleans Marriott on a mission.
Big Wine Players Target Pinot Noir - Plenty of small winery owners are cashing out, either because they're looking to retire or they see selling as the best way to keep their label growing
Plenty of small winery owners are cashing out, either because they’re looking to retire or they see selling as the best way to keep their label growing
Restaurant Awards- Lazy Bear- Lazy Bear bills itself as a modern American dinner party. But it's so much more.
Lazy Bear bills itself as a modern American dinner party. But it’s so much more. This Mission District restaurant effortlessly strips away the formality of a multicourse dinner and replaces it with conviviality, nostalgia and curiosity. With reverence for time and place, Lazy Bear is an ode to California where guests dine in concert with the season and can explore diverse wines, including an impressive collection of older California vintages.
