Fraudsters’ £2.5m haul on fine wine that didn’t exist

By Daily Mail Reporter
Updated: 17:22 EST, 13 October 2010


Wealthy investors handed over hundreds of thousands of pounds for fine wines that didn¿t exist

Tricked: Wealthy investors handed over hundreds of thousands of pounds for fine wines that didn't exist

A gang of con artists tricked wealthy investors into handing over hundreds of thousands of pounds for fine wines that didn’t exist, a court heard yesterday.

Only one case of wine was bought during the three years that the scam operated, the jury was told.

During that time, the gang members are said to have netted £2.5million, spending it on foreign holidays, fast cars, top hotels and expensive watches.

One of the ring leaders, Paul Craven, 37, allegedly bought a fleet of vehicles including a £40,000 Porsche Convertible, a £55,000 Range Rover, and a £32,000 BMW 320i Sports Convertible for his girlfriend.

Prosecutor Ann Evans told St Albans Crown Court how the gang took advantage of the market in wine sold ‘en primeur’.This is where wine is bought while still in the barrel at the vineyard.


It is then bottled and shipped to the UK where it is kept in bonded warehouses and does not attract VAT or Capital Gains Tax.

Mrs Evans said: ‘It is not released to the client immediately. The client is simply issued with a Certificate of Purchase.

‘The beauty of this scam was that the investors were not expecting to see the goods they had purchased for some time.’

Five men from London and Dorset are charged with fraud. The trial continues.

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