The wine doesn't exist or it's not in your account
This is one of the most brutal wine scams out there.
You may think you’ve invested £10,000 in a selection of fine wines that are expected to appreciate over the next 5 - 10 years, but the reality is that you’ve just sent £10,000 to a con artist.
What happens next will either go one of two ways. Either you’ll never be able to contact them again and they’ll disappear into the hills with your hard earned capital, or they’ll continue to contact you and persuade you to invest in even more wines that either don’t exist or you don’t own.
Either way it’s not good news.
One of the main assurances of investing in fine wine is that you own the asset outright and if you or they can’t prove that the wine is in your own personal account then you should be extremely suspicious.
How to avoid:
Step 1: Check that the company you’re dealing with is registered on Companies House
Step 2: Ask the wine merchant what bond they use to store their wine and then call that bonded facility to confirm this
Step 3: Make sure you’re provided with your own personal account registration number for HMRC regulated bond where your wine will be stored
Step 4: Ask the wine merchant how long it will take for the stock to be transferred into your account. If they own the stock and it is in their bonded facility it should be a case of switching around account numbers. You should only deal with companies who already own the wine stock. The process of transferring the wine into your account should take no longer than a week.
Step 5: Once they have confirmed that the wine is in you account, don’t take their word for it, speak to the bonded facility and get confirmation that the wine is in your account