Report: Federal Grand Jury Convened In Sherry-Lehmann Criminal Investigation

Wine Spectator reported last week that famed Manhattan retailer Sherry-Lehmann is potentially facing eviction as it owes more than $3.6 million to its landlord, Hong Kong-based Glorious Sun, amid wider allegations of non-payment to wholesalers, a cutoff by major credit card companies, and failure to deliver purchased wines to collectors. Now, the New York Times reports that the Justice Department has convened a federal grand jury to investigate the company in a criminal investigation. 

Citing former employees who have been contacted in the investigation, the Times says agencies including the U.S. attorney’s office in Manhattan, the Postal Service, and the New York Police Department are looking into the 89-year-old retailer. Owners Shyda Gilmer and Kris Green are said to be a focus of the inquiry, with a Manhattan grand jury slated to hear from witnesses this month.

Sherry-Lehmann is also facing lawsuits from three customers alleging non-delivery of more than $1 million in wine, the Times report added, and owes $2.7 million in unpaid sales tax in addition to millions more to lenders. In its report from last week, Wine Spectator detailed the stories of several collectors who have not received purchased wines or have discovered their wines stored by Sherry-Lehmann may be missing.

For its part, Sherry-Lehmann maintains that it plans to reopen after sidewalk repairs in front of the building are completed in the coming weeks. “Upon reopening, Sherry-Lehmann, the largest single wine retailer in North America offering the finest wines the world has to offer, will be fully stocked and have an upgraded HVAC system,” a spokesperson told Wine Spectator.

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