IEPlus: Wine investment scam sees three facing jail
A wine investment scam that first saw the light of day in 2007 could result in three people being given jail sentences in the Netherlands come November.
First flagged by the Dutch Financial Services Authority, AFM, and by wine magazine Decanter in 2007, the scam was uncovered when investment company Bordeaux Advisory disappeared, leaving investors to chase wine that had been sold at up to 10 times its actual value.
Clients were located globally in places such as London, the Netherlands, and Beijing. Decanter reported that one investor in Ontario, Canada acquired eight cases of 2002 2002 Château Lagrave Paran Bordeaux Supérieur for €1,170 a case, which was actually selling for about €140 a case.
According to the Amsterdam court case that concluded this past week, one 49-year-old is facing a four year jail term, and two others two year jail terms respectively. The fraud swindled €19.4m from some 350 investors, which was spent on cheap wine with no investment potential.
Sentencing is expected on 24 November.