Prolific Purveyor of Plonk: Part 2

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For me, one of the highlights of 2014 was attending Rudy Kurniawan’s sentencing hearing. Kurniawan had become larger than life, rocketing to stardom in the rare and fine wine world (see my first post for details). At the hearing, though, the illustrious Dr. Conti, wizard of wine and bilker of billionaires, was as unassuming as a petty thief. I guess the prospect of going to prison for a long time is kind of sobering.

Kurniawan had been convicted of mail and wire fraud in connection with the sale of counterfeit wine. Last month, his attorney filed an appeal alleging that (1) the FBI’s searches of Kurniawan’s home violated the Fourth Amendment, (2) the events alleged in Count One of the indictment (some of them time-barred) were improperly joined, and (3) it was unfair to use only the price paid by Kurniawan’s victims (as opposed to the impact of the price on these wealthy individuals) in establishing a sentencing guideline. 

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The Law of Location: Reign of Terroir

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The geographic origin of a wine has long been believed to impact its taste (“palate”) and aroma (“nose”). Factors such as climate, soil, and nearby vegetation leave their imprint on a grape to create a unique flavor profile. These factors in turn account for some of the noticeable differences in palate and nose among wines made from the same grape variety. For this reason, many consumers rely on designations of origin, or appellations, in choosing their wines. This is the essence of “terroir”—the idea that the holistic geophysical and ecological profile of a region influences the taste and other characteristics of the fruit grown there. Terroir is a source of pride, economic value, and contention among wine producers and consumers.

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99 Bottles of Plonk on the Wall

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When California wine collector and dealer Rudy Kurniawan was convicted of fraud in December 2013, the details of his elaborate scheme sent shock waves through the wine world. At last, a jury had confirmed what some in the industry had known for years: Kurniawan was a con artist whose too-good-to-be-true wines were in fact counterfeit. He was, as Assistant U.S. Attorney Stanley J. Okula, Jr., put it, a "prolific purveyor of plonk."

Kurniawan was sentenced on Thursday, August 7, to ten years in prison. In addition, he was ordered to forfeit (to give up as a penalty) $20 million worth of property and pay $28,405,502.50 in restitution to seven of his victims. I was fortunate to be able to attend the sentencing hearing. As I listened to the arguments from each side, I realized that this case was a legal smorgasbord and that I could use Kurniawan’s story to answer that frequently asked question, “What does law have to do with wine?”

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