Wine fraud, or counterfeiting, takes many forms and has become a billion-dollar problem worldwide. While purchasing from reputable vendors or producers is relatively safe, the secondary market – auctions, retailers, and brokers – is another matter. Counterfeits range from refilling authentic wine bottles to making imaginary vintages and preying on more inexperienced collectors. But even those who have participated in the market for years are still at risk. Maureen Downey is an independent expert on fine and rare wines, known as the “Sherlock Holmes of Wines.” She advises consumers to be vigilant and perform their due diligence when trusting buyers, even if they are friends: “Fraud is fraud – no matter the medium.”

An interesting example of fraudulent reselling of wines and spirits involves those damaged in floods and fires. Even when salvage and insurance companies disclose the damage, this will be glossed over in secondary transactions to maximize the rate of return. After Hurricane Katrina, the market was flooded with high-end wine that appeared drinkable, although in fact it had a very short shelf life and was not as robust as it was originally. Sellers failed to disclose that the bottles were damaged. Downey states that this type of fraud is rampant, particularly as profiteers dump damaged wines on emerging markets. Also, counterfeit bottles usually end up back in circulation. The bottles counterfeited and sold by Rudy Kurniawan (one of the most notorious wine forgers who was eventually indicted for fraud and is currently serving a 10-year prison term) and worth hundreds of millions, for example, are still floating around. Meanwhile, sophisticated new counterfeiters are targeting mid-range wines and recent vintages to sidestep scrutiny.

But if these cases involve so much money and are clearly fraud, why are they not prosecuted more frequently? Victims of wine fraud are often ashamed that they fell victim to fraud, and they are afraid to confront counterfeiters, refusing to come forward and allow prosecution of the crime. Previously, the FBI had a dedicated agent assigned specifically to wine fraud cases, but the bureau determined it was a waste of resources since they could not depend on the victims’ cooperation.

However, there are still remedies available for consumers and collectors. First, online resources such as https://www.winefraud.com/ allow potential buyers to educate themselves and verify if their sellers are blacklisted. This is similar to online art databases, where collectors can ascertain if their purchases were stolen or looted. Second, the role of an authenticator – as in fine arts and antiquities cases – is valuable. Experts mitigate the risk of wine fraud and allow purchasers to ensure that they are buying the real thing. After all, “Authenticating a wine is like authenticating a work of art.”

Since wine fraud cases can be extremely harmful to professional reputations, it is important to find a trustworthy authenticator to verify purchases as well as a legal team who can properly address this type of controversy. Amineddoleh & Associates has a history of successful partnerships with authentication and provenance experts of all kinds and can provide clients with the peace of mind to not only drink their wine, but enjoy it too.