A Tale of Wine Intrigue and Fraud Becomes a Major Movie
Several years ago, I wrote a column discussing a unique case of wine fraud and counterfeiting. It involved a tangled web of high-end collectors and a nefarious entrepreneur who took advantage of gullible, wealthy wine aficionados who were susceptible to being scammed.
Sound like a premise for a thriller movie? It certainly has all of the elements for a blockbuster tale: unlikely heroes, unscrupulous villains, scam artists, undaunted truth-seekers and easily duped victims. All against a setting of wealthy excess, hedonistic dinners and decadent debauchery. Just a few months ago, a major movie was released which recounts the deeds of such a counterfeiter. And it is a documentary no less.
The movie, “Sour Grapes” tracks the misadventures of counterfeiter extraordinaire Rudy Kurniawan over nearly 10 years, from his early exploits as a wealthy jetsetter entertainer to his ignominy as a convicted felon. Last week I watched the movie; next week I’ll review it.
Here then, the 2012 column:
We live in a world of checks and balances. They generally work as intended, protecting us from unscrupulous purveyors of information or products. On rare occasions, we hear of an instance of an individual or group that figures out a new way to game the system.
Last week, Rudy Kurniawan, a 35-year-old self-proclaimed multimillionaire, was arrested by the FBI on charges that he attempted to sell counterfeit wine, which, if authentic, would have been worth $1.3 million.
Mr. Kurniawan diligently worked at building a reputation in every aspect of the exclusive club of high-end wine lovers. For 10 years before his arrest, he played a major role in the wine auction market and was highly regarded as a sophisticated aficionado, wine connoisseur, collector, dealer and authenticity expert. Essentially Mr. Kurniawan was at the center of each check and balance in the wine world’s self-policing system.
Many in his closed circle regarded Mr. Kurniawan as generous and possessing impeccable standards. His arrest has rocked the very foundation of the world of wealthy collectors of high-end French Bordeaux and Burgundy wines.
Allow me to fill in the picture with a few factoids based on adjectives many attributed to him:
- Sophisticated aficionado. One of the wealthiest collectors/dealers in the world, Mr. Kurniawan enjoyed a lavish lifestyle. He was known to spend up to $250,000 a night on wines at expensive restaurants. Court papers indicate he racked up $16 million on his American Express card from 2006 to 2011.
- Collector. It is believed he owned 50,000 or more bottles of very expensive wine. At one time, he was considered the world’s most active wine buyer, influencing the prices for wines. He engaged in wine churning: buying and selling authentic – and counterfeit – wines to support his lifestyle.
- Dealer. Mr. Kurniawan sold $35 million worth of wine in 2006 alone, thus controlling both sides of the auction block.
- Authenticity expert. The deeper you descend, the bolder you get. He built a reputation for his skill in identifying (and apparently avoiding) counterfeit wines. Incredulously, he even went so far as to offer buyers a guarantee intended to protect against fraud.
- Counterfeiter. In 2008, Mr. Kurniawan consigned for auction a number of wines, including Burgundies with label dates between 1929 and 1971, even though the first productions of those wines took place many years later. He lied about these discrepancies yet continued to actively participate in the auction markets.
In Mr. Kurniawan’s home, the FBI found empty bottles of famous, and very expensive, wines, shipped to him by restaurants that he patronized. Apparently, he refilled the bottles with moderately priced California wines, offering them at auction as the original wines (and guaranteeing their authenticity).
Our system of checks and balances has taken on a new meaning in the wine world: collectors writing checks to Mr. Kurniawan as he was increasing his bank balances.
Nick Antonaccio is a 40-year Pleasantville resident. For over 20 years he has conducted wine tastings and lectures. Nick is a member of the Wine Media Guild of wine writers. 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.
