And Work of Human Hands

Total Page:16

File Type:pdf, Size:1020Kb

And Work of Human Hands Lifestyle Fruiti of By Margie Collins God’sand work of humanvine hands f wine is “bottled poetry”, we sometimes treat it like doggerel. over $21.9m from the sale, spent the best part of fourS decades In parts of China, South-East Asia and the Sub-Continent, amassing his collection. “Sometimes I was like a kid in a candy they add ice and Coca-Cola to red wine. Some Spaniards store; when I found a wine that I really liked, I just bought too Imix Sprite or Fresca with red wine (tinto de verano); sangria much of it,” he told Forbes. is red wine punch that includes fruit and brandy. A cooling Mr Koch’s exceptionally well-manicured path inevitably Austrian spritz is white wine mixed with soda or fizzy water, crossed with Rudy Kurniawan’s, a Jakarta-born 41-year-old wine while gluhwein is red wine warmed with spices, cloves, star anise collector who styled himself as having “arguably the greatest and cinnamon sticks. Basil Fawlty flatters a well-dressed diner in cellar on earth”. In 2012, Kurniawan was arrested, convicted and Fawlty Towers and unctuously tells him: “I can certainly see that sentenced to 10 years’ imprisonment for committing one of the you know your wine. Most of the guests who stay here wouldn’t biggest frauds of all time. While he bought and sold large amounts know the difference between Bordeaux and claret!” of rare wines in the early 2000s, Kurniawan also bought stocks of If, like the legendary California vintner Robert Mondavi, negociant Burgundy and cheap Napa Valley wines, re-labelling, wine to you is “passion, warmth of heart and generosity of spirit, selling and passing them off as high-end Bordeaux vintages. art, culture, the essence of the art of living”, then some care is Counterfeited bottles of Clos Saint-Denis from Domaine due to this divine nectar that helps to render the world bearable, Ponsot – of vintages between 1947 and 1971 – started turning up whose history is older than the transmutation of water into wine at auctions. Laurent Ponsot, head of the house, helped to uncover during the wedding at Cana. the fraud when he told authorities his family only started making the In 2014, Sotheby’s sold a 114-bottle set of Domaine de la wine in 1982. Romanee-Conti in Hong Kong for $1.6m, setting a record for When arrested in his LA lair, FBI agents found wine-tasting one of the most expensive wine lots ever sold at auction. That’s notes, labels, empty bottles, corks, recipes for faking vintage $14,121 per bottle; $1,700 per glass. In 1985, a bottle of Chateau Bordeaux and other counterfeiting materials. Mr Koch eventually Lafite 1787 sold for $156,450; a jeroboam of Chateau Mouton- found out he had between 400 and 500 bottles of fake wines in Rothschild 1945 sold for $310,700 and a Margaux 1787 for his collection he bought from Kurniawan and other fraudsters. It $225,000. Rare bottles of wine – like the Lafite 1787, which had was deeply personal for Mr Koch, who spent millions of dollars the initials Th. J. etched into it – are freighted with fascinating on legal fees pursuing the fraudsters. “I hate being cheated,” he back stories. Thomas Jefferson, third president of the United told Forbes. “There’s a code of silence in the wine industry. I was States, was a voracious oenophile who collected fine wines when not going to take it. With super-fine wines, you can taste the love he was ambassador to France. the vintner had in making it and that to me is almost a religious “Who in their right mind would invest in wine unless they are an experience. What price can you put on love?” Or indeed on wine expert?” asks Paul Lewis of Radio 4’s Money Box. “It’s a bit like gold - as an argument for the existence of God? it may or may not go up and people are gambling on the future price It is said that there may be as many as 10,000 of Kurniawan’s fake of the wine they own, hoping it will be worth more than they paid for bottles still in private collections. Wine-savvy fraudsters are upping it. It provides no income and unless you really know the wine, you their game and, according to wine detectives and authenticators, have no clue when the best time is to sell; it’s not for the amateur.” Nor it is becoming commonplace to find hundreds of empty bottles – for the faint-hearted, even if they have very deep pockets. with their original corks – that once held Bordeaux and Burgundy In 2016, 76-year-old American billionaire Bill Koch sold at vintages, for sale on eBay. Maureen Downey, a wine sleuth, estimates a fever-pitch auction lasting three days nearly half his collection that as many as a fifth of fine wines changing hands around the world of over 43,000 bottles of fine wines. Mr Koch, who pocketed is fake. Susan Barrie, of BBC Radio 4’s documentary The Wine 106 Ship Management International Issue 68 July/August 2017.
Recommended publications
  • 737 DCDBKURT1 Trial 1 UNITED STATES DISTRICT COURT 1 SOUTHERN DISTRICT of NEW YORK 2 ------X 2 3 UNITED STATES of AMERICA, 3 4 V
    737 DCDBKURT1 Trial 1 UNITED STATES DISTRICT COURT 1 SOUTHERN DISTRICT OF NEW YORK 2 ------------------------------x 2 3 UNITED STATES OF AMERICA, 3 4 v. S1 12 Cr. 376(RMB) 4 5 RUDY KURNIAWAN, a/k/a "Dr. Conti," 5 a/k/a "Mr. 47," 6 6 Defendant. 7 7 ------------------------------x 8 December 13, 2013 8 9:07 a.m. 9 9 Before: 10 10 HON. RICHARD M. BERMAN, 11 11 District Judge 12 13 APPEARANCES 13 14 PREET BHARARA, 14 United States Attorney for the 15 Southern District of New York 15 JASON HERNANDEZ, 16 JOSEPH FACCIPONTI, 16 Assistant United States Attorneys 17 17 WESTON, GARROU & MOONEY 18 Attorneys for defendant 18 BY: JEROME MOONEY 19 19 VERDIRAMO & VERDIRAMO, P.A. 20 Attorneys for defendant 20 BY: VINCENT S. VERDIRAMO 21 21 - also present - 22 22 Ariel Platt, Government paralegal 23 Bibi Hayakawa, Government paralegal 23 24 SA James Wynne, FBI 24 SA Adam Roeser, FBI 25 SOUTHERN DISTRICT REPORTERS, P.C. (212) 805-0300 738 DCDBKURT1 Trial 1 (Trial resumed) 2 (In open court; jury present). 3 THE COURT: Okay, everybody. Nice to see you. Please 4 be seated and we'll start. 5 We'll have the next government witness. 6 MR. HERNANDEZ: Government calls William Koch. 7 THE COURT: Okay. 8 THE DEPUTY CLERK: Sir, please remain standing. 9 WILLIAM KOCH, 10 called as a witness by the Government, 11 having been duly sworn, testified as follows: 12 THE DEPUTY CLERK: Can you state your name for the 13 record, please? 14 THE WITNESS: William Koch, spelled K-O-C-H.
    [Show full text]
  • Wine Fraud: in Defense of Auction Houses
    Wine Fraud: In Defense of Auction Houses Home | About Us | Find a Store | Wine Regions | Site Map Pro Version | GBP Change Currency | Help | Mobile Site Magazine Newsletter Home (Magazine) > Features > Wine Fraud: In Defense of Auction Houses Departments: Wine Fraud: In Defense of Auction Houses Recent Stories The Wire An English Brewer in Just In Normandy is Conquering Features the French Brewer shows the French Architectural Report what beer should really taste Bill of Fare like. Q&A Posted Friday, 10-Aug-2012 Unusual Suspects Receptions and Dinners Mark Julia Child's 100th When We First Met Birthday © Fotolia.com Case Study Gastronomes throughout North America celebrate Science Corner An examination of fraud in the fine-wine industry. By Maureen Downey. great chef's upcoming The Bookshelf centenary. Posted Friday, 10-Aug-2012 Critics Pick Posted Thursday, 09-Aug-2012 The issue of wine fraud in the fine- and rare-wine industry has exploded A Real French Experience: in the media since the March arrest of alleged counterfeiter Rudy Picking Grapes Kurniawan in the United States. Along with some other industry insiders, The lowdown on getting I've been waiting for the matter to be tackled for more than a decade. amongst the vines in France. However, I wasn’t expecting the kind of response that we've seen Posted Friday, 10-Aug-2012 surrounding the Kurniawan affair: frenzied enthusiasts, collectors, wine- forum users and the occasional journalist have grabbed the wrong end of Harvest Brings Smiles to the stick. When it comes to the most frequent sources of fake wine and French Growers' Faces the health of the United States wine-auction market, false notions are First indications are the rampant.
    [Show full text]
  • 1 Collective Action and UK Wine Investment Fraud Karina Einarsen
    Collective action and UK wine investment fraud Karina Einarsen Lisa Jack* Accounting and Financial Management Group, Business and Finance Faculty, University of Portsmouth, Richmond Building, Portland Street, Portsmouth PO1 3DE UK *Corresponding author: [email protected] ABSTRACT Purpose The purpose of this research note is to examine the measures taken by legitimate wine investment companies and enforcement agencies to counter alternative investment scams. Design We interviewed wine industry and law enforcement specialists to understand the nature of wine investment fraud and the characteristics of the victims. We also drew on secondary data in the form of government agency research and media sources. Findings The majority of wine investment frauds are boiler room operations, using social engineering techniques to draw victims into the fraud. We conclude that countering wine investment fraud requires public education by government, the wine industry and the police. Research Limitations This is a small-scale study that uses interviews with experts in the industry and in law enforcement, and secondary data as evidence. Despite the limitations in the number of interviews, we are able to comment on the social impacts of alternative investment scams and to suggest a theoretical basis for future work in the field. 1 Originality We outline how collective action theory might be extended to investigate fraud prevention measures in other financial and commodity markets. Keywords: wine commodity investment, fraud, elder abuse Paper Classification: Research Paper 2 Collective action and UK wine investment fraud INTRODUCTION The UK's wine market is the sixth largest in the world, with an estimated overall consumption of 133.8 million nine-litre cases per year (Tisi, 2015).
    [Show full text]
  • Essays in Applied Microeconomics John Hartman University of South Florida, [email protected]
    University of South Florida Scholar Commons Graduate Theses and Dissertations Graduate School June 2018 Essays in Applied Microeconomics John Hartman University of South Florida, [email protected] Follow this and additional works at: https://scholarcommons.usf.edu/etd Part of the Economics Commons Scholar Commons Citation Hartman, John, "Essays in Applied Microeconomics" (2018). Graduate Theses and Dissertations. https://scholarcommons.usf.edu/etd/7679 This Dissertation is brought to you for free and open access by the Graduate School at Scholar Commons. It has been accepted for inclusion in Graduate Theses and Dissertations by an authorized administrator of Scholar Commons. For more information, please contact [email protected]. Essays in Applied Microeconomics by John Hartman A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Economics Department of Economics College of Arts and Sciences University of South Florida Major Professor: Andrei Barbos, Ph.D. Gabriel Picone, Ph.D. Joshua Wilde, Ph.D. Benjamin Craig, Ph.D. Date of Approval: June 12, 2018 Keywords: reputational effects, credence goods, rationality, real-world outcomes Copyright © 2018, John Hartman ACKNOWLEDGMENTS I want to thank my major professor, Andrei Barbos, for all of the time and effort he has spent making this a better project. I would also like to thank the rest of the committee for their ideas and support. Specifically, Benjamin Craig has personally mentored me for the past four years, and I now consider him a good friend. My friends and family have patiently supported me throughout this entire process. My wife, Courtney, has been forced to put up with countless late nights and weekends alone.
    [Show full text]
  • Jay Mcinerney Words by Dan Keeling Photos by Alex Lockett
    Mister Manhattan Noble Rot meets the ‘hedonist in the Words by Dan Keeling cellar’ Jay McInerney Photos by Alex Lockett There’s a theory that when someone becomes seriously brand of amorality and excess, he writes prose as famous their image is indelibly frozen on to the collective precise as a fine Burgundy, another of his passions consciousness. For Jay McInerney – novelist, wine writer and one about which he has written extensively. If and avid bon vivant – this happened sometime during fame first took him inside ’80s Manhattan’s art and 1984 when his zeitgeist-defining debut Bright Lights, music scenes, his wine-writing career has broadened Big City and hedonistic antics established his reputation his cross-section of friends and potential subject as the hard-partying bad boy of modern American matter, from real-estate developers and political literature. Innovatively written in the second person, this journalists to astronomers and the notorious, now dark-humoured tale of 20-something disillusionment in incarcerated, wine-forger Rudy Kurniawan. “I thought Manhattan has a degree of self-reference about it as its Rudy would be interesting to write about, but he was protagonist stumbles from one vacuous liaison to nervous about being scrutinised. Happily, I never fell another, and gets fired from his job as a fact-checker for under the spell,” says McInerney. The New Yorker (as McInerney once was). So enduring is We meet for Cornas and pizza at a restaurant the novel’s shadow that less-assured authors might rue that boasts one of Manhattan’s most sainted wine ever having written it.
    [Show full text]
  • What Can the Fine-Wine World Learn from the Kurniawan
    (nouveau) After Rudy: What can the fine-wine world learn from the Kurniawan case? The “wine crime of Domaine Ponsot’s expensive reds as hours of deliberation, the jury found the real thing. Kurniawan guilty of mail fraud and wire the century” reached It was fitting that Ponsot was the fraud in connection with fake wines. first of three famous winemakers on He faces up to 40 years in prison, plus its denouement in a the witness stand that day. Fake Ponsot fines. Mooney said he would appeal. Manhattan courtroom wines consigned by Kurniawan to Sentencing is scheduled for April 24. auction house Acker Merrall & Condit in the week before for an April 2008 New York sale set the Vindication and vilification case in motion. The immediate effect, of course, was Christmas, with the The testimonies of Ponsot, Aubert vindication—for Wynne, assistant US conviction of Rudy de Villaine of Domaine de la Romanée- attorney Jason Hernandez, Koch, who Conti, and Christophe Roumier of has long been crusading against Kurniawan on multiple Domaine G Roumier were among counterfeit wines, as well as for many the highlights of the landmark United others, including collectors Don counts of mail and wire States of America v Kurniawan trial, Cornwell and Doug Barzelay, who fraud. Elin McCoy the first time the US government had alerted Ponsot to the smoking-gun prosecuted a criminal case against a wines in the 2008 Acker auction. reports on the dramatic wine counterfeiter. Other prominent “This is the end of my crusade,” figures at the trial included anti-wine- Ponsot told me outside the courtroom court proceedings that fraud crusader and billionaire William after his testimony.
    [Show full text]
  • UNIVERSITY of CALIFORNIA, IRVINE Wine, Fraud and Expertise
    UNIVERSITY OF CALIFORNIA, IRVINE Wine, Fraud and Expertise THESIS submitted in partial satisfaction of the requirements for the degree of MASTER OF ARTS in Social Ecology by Valerie King Thesis Committee: Professor Simon Cole, Chair Assistant Professor Bryan Sykes Professor George Tita 2015 © 2019 Valerie King TABLE OF CONTENTS Page ABSTRACT iv INTRODUCTION 1 I. FINE WINE AND COLLECTOR FRAUD 4 II. WINE, SUBJECTIVITY AND SCIENCE 20 III. WHO IS A WINE FRAUD EXPERT? 23 CONCLUSION 28 REFERENCES 30 ii ACKNOWLEDGMENTS I would like to thank my committee members, Professor Simon Cole, Assistant Professor Bryan Sykes and Professor George Tita. iii ABSTRACT Wine, Fraud and Expertise By Valerie King Master of Arts in Social Ecology University of California, Irvine, 2019 Professor Simon Cole, Chair While fraud has existed in various forms throughout the history of wine, the establishment of the fine and rare wine market generated increased opportunities and incentives for producing counterfeit wine. In the contemporary fine and rare wine market, wine fraud is a serious concern. The past several decades witnessed significant events of fine wine forgery, including the infamous Jefferson bottles and the more recent large-scale counterfeit operation orchestrated by Rudy Kurniawan. These events prompted and renewed market interest in wine authentication and fraud detection. Expertise in wine is characterized by the relationship between subjective and objective judgments. The development of the wine fraud expert draws attention to the emergence of expertise as an industry response to wine fraud and the relationship between expert judgment and modern science. iv INTRODUCTION In December 1985, at Christie’s of London, a single bottle of 1787 Château Lafitte Bordeaux, was auctioned for $156,000, setting a record for the most expensive bottle of wine ever sold (Wallace 2008).
    [Show full text]
  • IRELL & MANELLA LLP Layn R. Phillips (103854) Bruce A. Wessel
    1 IRELL & MANELLA LLP Layn R. Phillips (103854) 2 Bruce A. Wessel (116734) Melissa R. McCormick (180384) 3 1800 Avenue of the Stars, Suite 900 Los Angeles, California 90067-4276 4 Telephone: (310) 277-1010 Facsimile: (310) 203-7199 5 [email protected] [email protected] 6 [email protected] 7 Attorneys for Plaintiff WILLIAM I. KOCH 8 9 SUPERIOR COURT OF THE STATE OF CALIFORNIA 10 FOR THE COUNTY OF LOS ANGELES 11 12 WILLIAM I. KOCH, an individual, ) Case No. ) 13 Plaintiff, ) COMPLAINT FOR FRAUD, NEGLIGENT ) MISREPRESENTATION, AND 14 vs. ) VIOLATION OF CALIFORNIA UNFAIR ) COMPETITION LAW 15 RUDY KURNIAWAN, an individual, ) ) 16 Defendant. ) ) 17 18 Plaintiff William I Koch alleges on personal knowledge as to himself and on information 19 and belief as to defendant Rudy Kurniawan: 20 PRELIMINARY STATEMENT 21 1. Before he turned 30, Rudy Kurniawan became the most prominent wine aficionado 22 in Los Angeles, cutting a broad swath through high-end auctions and exclusive wine tastings. 23 Coming out of nowhere, Kurniawan quickly became known as the youthful, ultra-wealthy 24 foreigner who spent aggressively at wine auctions and bid up prices dramatically. He became so 25 prominent that the Los Angeles Times wrote a glowing profile about him in December 2006, just 26 after he turned 30, under the headline "$75,000 a case? He's buying." The article explained that 27 Kurniawan, who drove a Bentley and a Ferrari, was spending a million dollars a month on wine at 28 auctions at Christie's, Zachys, and elsewhere, and that he owned "one of the world's premier wine IRELL & MANELLA LLP A Registered Limited Liability Law Partnership Including Professional Corporations 2112688 1 collections .
    [Show full text]
  • Faking It RUDY KURNIAWAN Stands Accused of Selling Millions of Dollars of Bogus Vintages
    Faking It RUDY KURNIAWAN STANDS ACCUSED OF SELLING MILLIONS OF DOLLARS OF BOGUS VINTAGES. JAMES SUCKLING RECALLS AN ODDLY PROPHETIC 2006 DINNER WITH THE NOW INFAMOUS WINE LOVER he first and only time i met rudy kurniawan was in 2006 in Los Angeles. It was nothing more than a friendly wine dinner with a mutual friend, although I was intensely curious to discover more about the young man some people were calling one of the Tgreatest wine collectors in the world. I had no idea that, five years later, thefbi assistant director in the New York office of the would arrest the Indonesian on four counts fbi, said that “the bad-faith sale of any commodity of wire and mail fraud in connection with you know to be a counterfeit, fake or forgery is hundreds of fake wines. His name wasn’t even a felony. Whether you are peddling a Picasso or the grape Rudy Kurniawan – it’s come to light that Zhen a Pétrus, a Botticelli or a Burgundy – unless it is swindle Wanghuang is his real name, and he’s possibly what you say it is, the sale is a fraud.” clockwise from China and not Indonesia. None of this had come to light when my friend from above The international press and the internet have Rudy Kurniawan; James Orr and I set out one night to Rosemead, a fake labels of been atwitter with the 31-year-old’s escapades suburb of Los Angeles, for dinner with Kurniawan. some of the most over the years of buying, selling and drinking Orr said I had to meet a young wine collector sought-after wines – with apparently a large amount who had taken California by storm with his lavish wines; an Acker being fakes.
    [Show full text]
  • Worldwide Wine Auction Revenues Fall in 2012 Market Diversifies As Bordeaux Prices Drop
    Worldwide Wine Auction Revenues Fall in 2012 Market diversifies as Bordeaux prices drop Peter D. Meltzer Posted: January 15, 2013 2 Sales of fine and rare wine worldwide fell 19 percent in value from a record $478 million 2011 to $389 million in 2012, according to figures released by the major commercial auction houses. This is the first decline since 2009, when markets were still struggling to emerge from the global financial crisis. This year, falling prices and fewer consignments in Hong Kong accounted for the slump in sales. “Worldwide totals for 2012 are a reflection of the drop in prices overall, particularly for Château Lafite Rothschild and other first-growth Bordeaux, especially those from younger vintages,” said Richard Harvey, senior international director of Bonham’s wine department. In the United States, auction revenues dropped 10 percent to $131.8 million. Though the number of lots on the block in 2012 actually rose to 46,457 from 42,705 in 2011, the average price per lot in 2012 was $2,792, down from $3,428 the previous year. Percent-sold rates averaged 95 percent. Results in Hong Kong were similar, with sale totals down 32 percent to $155.2 million. There, the number of lots on offer in 2012 fell to 24,353 from 27,818 in 2011, and the average price per lot tumbled from $8,227 to $6,226. Percent-sold rates averaged 93 percent. Asian buying was less dominant this year, noted Jamie Ritchie, president of Sotheby’s Wine. “However, there was renewed interest from North American buyers, who reengaged at new price levels, and a considerable surge in demand from Latin American buyers, who have become an important part of the international market,” said Ritchie.
    [Show full text]
  • WIC Template
    Week in China Second Edition The Little Red Book Bottoms up? How China’s wine landscape is transforming Brought to you by Winter 2015 www.weekinchina.com The Little Red Book Contents 3 A taste of the future An overview of what’s featured in this second edition of The Little Red Book 6 Fine wine at auction Why the world’s top vintages are still going under the hammer in Hong Kong; plus a prestigious tasting of Burgundy’s La Romanée 15 The market goes mainstream China’s wine consumers and their changing tastes 21 New horizons for the New World Australian and South African wine bosses talk about their hopes for sales in China 27 Grace: the best of the boutiques Is China’s best winemaker from the sandy soil of Shanxi? 1 1 Another edition uncorked The Little Red Book Opening remarks Week in China Winter 2015 A taste of the future R e u t e r s Demand for wine in China is starting to broaden out n The Little Red Book last year we wondered in land area devoted to vineyards. reached production, with vines taking about five Iwhether French hauteur had been hurt by The Chinese have more than doubled the years before they start bearing a full crop. And news that China had taken over as the leading amount of land under vine in the last 15 years more significantly still, the large majority of the consumer of red wine. and are now boasting close to 11% of the global harvest is destined to end up as table grapes and Flushed by their achievement of quaffing al - grape area, the International Organization of Vine raisins, not as part of the winemaking process.
    [Show full text]
  • Filed: New York County Clerk 05/19/2016 12:22 Pm Index No
    FILED: NEW YORK COUNTY CLERK 05/19/2016 12:22 PM INDEX NO. 153769/2016 NYSCEF DOC. NO. 3 RECEIVED NYSCEF: 05/19/2016 SUPREME COURT OF THE STATE OF NEW YORK COUNTY OF NEW YORK HROTHGAR INVESTMENTS LIMITED, Index No.: 153769/2016 Plaintiff, – against – COMPLAINT JURY TRIAL DEMANDED VANQUISH WINES LIMITED, RICHARD BRIERLEY, RUDY KURNIAWAN, XAVIER NEBOUT, CEP’AGE, MARC LAZAR, and JOHN and JANE DOES 1-10, Defendants. Plaintiff Hrothgar Investments Limited (“Plaintiff” or “Hrothgar”), by its attorneys, Pryor Cashman LLP, as and for its complaint against defendants Vanquish Wines Limited (“Vanquish”), Richard Brierley, Rudy Kurniawan, Xavier Nebout, Cep’Age, and Marc Lazar (together, “Defendants”), alleges as follows: NATURE OF ACTION 1. In 2011, the Defendants sold Hrothgar a parcel of 132 bottles of purportedly rare and fine wines from the Domaine de la Romanée-Conti (“DRC”) (the “Parcel”). These bottles, if real, were some of the most sought after bottles of French Burgundy wine in the world – rare vintages that were seldom available for purchase. The Defendants represented to Hrothgar and its agent that the wine was real, and took great pains to cast an aura of authenticity over each bottle. 2. But, in reality, the Defendants knew that the bottles of wine they were selling to Hrothgar were not actually the rare bottles of DRC that they had represented them to be. Rather, the Defendants were fully aware that the bottles of wine they were selling were fakes that had 1 1 of 48 been specifically engineered by a notorious counterfeiter, Rudy Kurniawan, to create the appearance of having the characteristics of real DRC wine, but which were actually forged bottles containing concoctions of lower quality wine.
    [Show full text]