This is an excerpt from Wine Fraud Enters Its Golden Age, reported by Christine Haughney of Zero Point Zero as part of its Food Crimes series. Read the full story in its entirety at FoodRepublic.
It was perhaps the biggest victory in the global struggle against wine fraud: In August 2014, Rudy Kurniawan, the world’s most well-connected wine fraudster, was sentenced to 10 years in prison and ordered to pay $29 million in restitution for his role in a massive counterfeit-wine scheme that victimized some of the world’s most respected wine collectors.
But the story does not end there. In the 15 months since Kurniawan went to prison, industry experts say that wine fraud has become more prevalent and expanded to all price points, even more affordable wines enjoyed by average consumers worldwide.
“People that think because Rudy in jail this is over are really fooling themselves,” says noted wine-fraud expert Maureen Downey, who advised prosecutors during the sentencing phase of Kurniawan’s trial.
An untold number of Kurniawan’s fake wines are still in circulation, Downey says. And given what investigators know about the scope of his counterfeiting operation, the kinds of wines he claimed to be selling, the prices he was selling them for and adjusting those numbers for inflation, the amount of bogus bottles could add up to more than $500 million in further fraudulent sales.
Such is the viral nature of wine fraud: Once a counterfeit wine passes muster on the luxury wine market, it often disappears into some secluded cellar for years before passing on to the next collector. In fact, Downey says, there are still probably fakes floating around from the last major scandal-scarred wine dealer: Hardy Rodenstock, the guy behind the infamous Thomas Jefferson bottles, which were exposed as probable fakes nearly a decade ago.
And these are just the high-profile cases. Downey points to burgeoning criminal cells across Europe that are now manufacturing fake wines, and a massive barge roaming through international waters around Asia where wine counterfeiters operate freely out of sight and largely out of reach of authorities, she says.
The problem isn’t limited to ultra-high-end bottles. Even lower priced wines are targets for enterprising fraudsters. Downey notes that knock-offs of Hollywood power couple Angelina Jolie and Brad Pitt’s Miraval rose, which sells for around $20, have turned up in Europe and Asia.
For aspiring criminals, it seems, wine remains a very lucrative field. This is Kurnaiwan’s legacy. “Unfortunately, Rudy taught people this is a way to make money,” Downey says.
Food Crimes, Episode 4: Corkscrewed: The Art of Fake Wine premieres tomorrow on FoodRepublic.com.