Premier Cru Owner Pleads Guilty, Detailing Ponzi Scheme

John Fox, once a leading wine merchant, was escorted into an Oakland, California, courtroom by federal marshals last week, shackled hand and foot. In a low voice, Fox, 66, pleaded guilty to a single count of wire fraud in connection with a massive Ponzi scheme he operated at Premier Cru, the Berkeley shop he cofounded with warehouse manager Hector Ortega in 1980.

Fox had faced up to 20 years in prison, but as a result of his plea agreement, his maximum possible sentence has been reduced to six years and six months. Fox has also agreed to provide restitution of at least $45 million to Premier Cru customers who pre-ordered wine they will never receive, as well as to other creditors. As part of his plea agreement, Fox provided the court with a recital of his misdeeds at Premier Cru and also in his personal life. It detailed a scheme to take money from customers for wines he didn’t have yet, sometimes diverting that money to fancy cars, a multimillion dollar home and even women he met online. Wine Spectator has more on this story.

Tagged : retail, retailers, wine, Wine Spectator

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