Grapevine
This week I present Report #2 in my periodic series I refer to as “What ever happened to ______?”
The subject matter of my weekly columns typically has a natural and logical beginning and conclusion. However, there have been occasions in which the storyline has been in a state of flux. Whether reporting on an aspect of the wine world that is unfolding as I pen my column or on an open-ended subject that has no determinable conclusion, I periodically follow-up to seek closure on these columns. On occasion I also hear from readers inquiring about the status of a particular subject.
This week I report on “What ever happened to the counterfeit Thomas Jefferson wines?”
High-end, highly respected, wealthy wine collector Bill Koch, who has poured millions of dollars of his personal wealth into political and social causes across the United States, has also focused his wealth, collector’s passion–and perseverance–on a one-man legal campaign against the prevalence of counterfeit wine in the marketplace. Over the last seven years he has initiated multiple lawsuits against private sellers, brokers, retail merchants and auction houses from whom he purchased wines, which wines, according to Koch, were (or should have been) known to be counterfeit.
Koch has stated that his intent is to restore esteem to the wine auction market, which he claims is fraught with widespread fraud and limited accountability. Ultimately he has a personal interest and stake. As an avid collector for the last 30 years, he has amassed a wine collection estimated to be valued at over $12 million.
His personal investment in these allegedly counterfeit wines is estimated to be nearly $1 million. But he has deep pockets to sustain these lawsuits. While it is believed that he has spent an astronomical $17 million in legal fees since 2006 to pursue his cause, that amount pales in comparison to his personal wealth, estimated to be in excess of $4 billion.
The counterfeit wines I previously reported on famously included four bottles of 1787 French Bordeaux wine purported to have been purchased by Thomas Jefferson on one of his wine buying trips to France. Presumably lost for centuries and found in the early 1980s, the bottles were etched with Jefferson’s initials, which presumably validated their source and provenance. Koch paid $300,000 for the wines at a Christie’s auction, only to find out a number of years later they were counterfeit. At the time, the buzz in the wine world was how such a sophisticated collector–of significant financial means–could be so easily duped. Mr. Koch’s reaction? Sue. Sue Christie’s and sue the seller of the wines.
How did Koch fare in his legal battle for vindication? After years in court and a major legal bill, an appeals court has recently determined that his lawsuit against Christie’s had been filed after the statute of limitations had run out. In essence he lost on a technicality. His high-powered lawyers, investigators and cash horde could not prevail; he was defeated by the mere passage of time.
The German seller, a foreign citizen, never showed his face in the United States and refused to be deposed. Koch obtained a default judgment, but the likelihood of ever collecting against it is slim.
What was once the plum in Koch’s collection, and the envy of his fellow high-end collectors, is now the albatross he must wear around his neck.
Has this dampened his one-man crusade to change the wine auction world and recover his substantial investment in counterfeit wines? Not at all. Koch currently has at least six lawsuits in various stages of litigation. Just last month, he won a court battle against a fellow wealthy, high-end wine collector. A jury awarded Koch $12 million, including punitive damages. This time he may collect.
How will Koch fare in his battle to restore authenticity and prestige to the rarified arena of wine auctions? Time–and those deep pockets of cash–will tell. Pride and revenge are strong motivators amongst wealthy collectors in their quest for bragging rights.
Nick Antonaccio is a 35-year Pleasantville resident. For over 15 years he has conducted wine tastings and lectures. He also offers personalized wine tastings and wine travel services. Nick’s credo: continuous experimenting results in instinctive behavior. You can reach him at nantonaccio@theexaminernews.com or on Twitter @sharingwine.
