[The Hustle]( Issue #160
[The Hustle, Sunday, May 23, 2021](
Sunday, May 23, 2021 The man who sold millions in counterfeit wine to rich collectors How an unassuming young supertaster nearly pulled off the biggest wine fraud in US history. BY [Zachary Crockett]( In the early 2000s, a new face appeared in Americaâs elite wine circles. Rudy Kurniawan was secretive about his past. But the gregarious 20-something quickly made his name known by throwing lavish tasting parties attended by Hollywood producers, wealthy bankers, and tech titans. Kurniawan seemed to have boundless cash and a knack for finding extremely rare vintage bottles that lifelong oenophiles had only ever dreamed of â 1920 Petrus, 1945 Romanée-Conti, 1947 Château Lafleur. In a few short years, he would sell off millions of dollarsâ worth of his wines to some of Americaâs wealthiest connoisseurs. But behind the ever-flowing stream of Burgundies, Kurniawan harbored a dark secret: He was carrying out historyâs greatest wine fraud. And it would take a vengeful billionaire, a French vintner, and the FBI to get to the bottom of the barrel. The new kid on the block Little is known about Kuniawanâs early life. Born Zhen Wang Huang in Jakarta, Indonesia, in 1976, he came to the US on a [student visa]( in the mid-â90s to study accounting at Cal State Northridge. By [2001](, heâd settled in the Los Angeles suburb of Arcadia and developed an obsession with California wines. Using money heâd supposedly sourced from his wealthy family, he soon turned his attention to expensive French wines â particularly those from the region of Burgundy. [Kurniawan] Photo illustration by The Hustle In the early 2000s, Burgundies werenât wildly popular in the US. But Kurniawan seemed to sense an opportunity for market growth. He learned all he could about the wines, talking up shop owners, snatching up 100s of bottles, and keeping detailed tasting notes. âHis average bottle price was probably $400 to $500 per bottle,â Kyle Smith, a Los Angeles shop owner who sold Kurniawan wine, later [told]( documentary producers. âHe probably bought $500k [of wine] in the first year.â Kurniawanâs deep pockets gained him entry into the most prestigious tasting group in Los Angeles: a cadre of prominent, wealthy men â Hollywood directors, music executives, tech entrepreneurs, and real estate tycoons â who called themselves the âBurgWhores.â Kurniawan wasted no time establishing himself as the leader of the pack. He began to frequent auctions all over the country, [spending]( as much as $1m/month on wine, according to various news reports. During bidding, heâd thrust his paddle up in the air and leave it hoisted until he won. The price seemed inconsequential. And Kurniawan liked to share his hauls. At tasting parties, it wasnât unusual forJurniawan and his friends to drink through $100k-$200k worth of wine in a single night. A [2006 profile]( in The Los Angeles Times titled â$75,000 a case? Heâs buyingâ described Kurniawan as a âyoung, hipâ extraordinaire whoâd âupped the industry anteâ with his buying power and hobnobbing. âAuction houses were giddy,â the articleâs author, Corie Brown, later recalled in [Sour Grapes](, a documentary about Kurniawanâs plight. âNo one had ever spent that much money that fast.â [placing bid] Kurniawan placing a bid at a wine auction in the mid-2000s (archival footage, via Sour Grapes) Kurniawan was introduced to the â12 Angry Men,â a group of wine lovers with âfuck youâ money who dined out at fine NYC restaurants, regularly racking up 6-figure bills. When asked about the source of his money, the enigmatic collector was vague. And after each dinner, heâd request to keep the empty wine bottles. To his new companions, this was strange behavior. But as long as the vino was flowing, nobody seemed to care. A sellerâs market By 2006, Kurniawan, then just 30, had amassed a personal cellar so robust that the Calgary Herald declared him the âKing of rare wines.â To others, he became known as âDr. Contiâ â an homage to his favorite wine, Domaine de la Romanée-Conti. In a few short years, heâd gained the trust and respect of some of the nationâs foremost wine critics, scholars, collectors, and buyers. But more importantly, heâd played a central role in drumming up hype around vintage wines. According to a 2006 report from Wine Market Journal, the average price of a vintage wine bottle sold at auction increased by 62% between 2001 and 2006. During the same time period, worldwide wine auction sales ballooned from $90m to $300m. Burgundies, in particular, were a hot commodity: Bottles that sold for $400 just a decade earlier were now [courting bids]( for $13k. Kurniawan decided it was time to sell. [holding bottle] John Kapon, who helped Kurniawan sell vast quantities of wine, holds a bottle of Chateau Lafite Rothschild (est. value $20k-$30k) at an auction preview in 2010 (MIKE CLARKE/AFP via Getty Images) Through his high-flying social circle, he befriended John Kapon, an ex-hip-hop producer who ran Acker Merrall & Condit, a boutique wine auction house in NYC. In January 2006, Kapon agreed to put up a selection of Kurniawanâs wines on the auction block. The collection â dubbed âthe Cellarâ â featured wines that the market hadnât seen in years and marketed Kurniawan as one of the countryâs most trusted collectors. âThis is a collector who actually inspects his wine,â read the event catalog.  âOver the years, and after seeing a number of counterfeit wines, this collector takes exceptional pride in the bottles he has acquired.â Over a 2-day span, the auctionâs 1,742 lots brought in a combined $10.6m in sales. The auction was so successful that the duo decided to run another one 9 months later. This time, sales topped $24.7m, setting a [record]( for the highest-grossing wine auction in history. With his proceeds, Kurniawan chameleonized himself into a playboy of epic proportions. He drove a Lamborghini Murciélago, purchased $535k worth of Patek Philippe watches, and bought an $8m mansion in Bel-Air. But behind the scenes, some prominent figures in the wine space began to question Kurniawanâs rise. Astute observers noticed, for instance, that heâd sold 10 bottles of 1945 Château Pétrus â a vintage of which only 600 bottles were produced, and only a few dozen were known to still exist. It seemed highly unlikely that a collector couldâve sourced that kind of haul out of thin air. [Pétrus wine] Bottles of Pétrus sold by Kurniawan (US Department of Justice) On the popular forum Wine Berserkers, a [thread]( chronicling the oddities of Kurniawanâs wines swelled to 9k posts. Evidence also emerged that Kurniawanâs uncles, [Hendra Rahardja]( and [Eddy Tansil](, had embezzled $600m+ from Indonesian banks and fled the country in the â90s. These doubts intensified after Kurniawanâs next few auctions were withdrawn due to questions of [authenticity](: - In 2007, a Christieâs auction pulled a lot of Kurniawanâs 1982 Château Le Pin after the company deemed them to be fake.
- In 2008, Kaponâs auction house withdrew $600k+ worth of Domaine Ponsot wine when the vineyardâs owner showed up in person from France and personally called them counterfeits. âWe try our best to get it right,â Kurniawan [told]( a Wine Spectator reporter. âBut itâs Burgundy, and sometimes shit happens⦠I just want the market to get healthy.â The king of rare wine was hemorrhaging credibility â and things were about to get a lot worse. A smited billionaire and a pissed vineyard owner Down in Palm Beach, Florida, the energy billionaire Bill Koch began to realize that heâd been taken for a ride. An inheritor of one of Americaâs [largest family fortunes](, Koch had spent decades collecting a trove of the worldâs rarest wines, which he kept in a sprawling cellar underneath his 45k-square-foot mansion. [Bill Koch examining bottle] Bill Koch closely examines a bottle from his collection (Bill Koch, via Berry Bros. & Rudd) A top buyer at auctions, Koch grew suspicious of counterfeiters and hired authenticators to vet all 44k bottles in his collection. The results were sobering: 5 bottles heâd purchased from Kurniawan at the 2006 New York auction â $75k in total â were fakes. In 2008, he filed a [$3m lawsuit]( against Kurniawan and commissioned a private investigator to dig into the manâs past. Around the same time, Laurent Ponsot, the vineyard owner whoâd contested the 2008 auction, started to do some digging of his own. Kurniawan had attempted to sell bottles of 1945 and 1971 Clos St Denis from Ponsotâs vineyard â a wine his family didnât even start producing until 1982. After visiting NYC and confronting Kurniawan about the origin of the fake wines, he was left with a [sinking feeling]( that something was amiss. So, Ponsot embarked on a journey across Asia to try to unearth Kurniawanâs mysterious supply chain. By 2010, the efforts of these men converged when the FBI stepped in to covertly investigate Kurniawanâs role in the flood of counterfeit Burgundies that had infiltrated the market. [Laurent Ponsot] Vintner Laurent Ponsot â whose detective work later proved critical in identifying Kurniawanâs fraud â posed in his vineyard in Morey-Saint-Denis, France, in 2012 (Thierry Esch/Paris Match via Getty Images) Amid the mounting controversy, Kurniawan struggled to sell his wines at auction. At a London auction in February of 2012, he attempted to offload 78 bottles of Burgundy wine from the esteemed Domaine de la Romanée-Conti under an alias â but the lot was withdrawn after astute critics noted the serial numbers were off. Nonetheless, he continued to sell extremely rare wines of unclear origin to private buyers, including: - A $15.1m sale to David Doyle, the co-founder of QuestSoftware
- A $5.3m sale to Brian Devine, the former CEO of Petco
- A $3.1m sale to Andrew Hobson, an executive at Univision
- A $2.2m sale to Andy Gordon, a Goldman Sachs partner This apparent success belied a mess of financial woes. According to [court records](, Kurniawanâs had debts in excess of $11m. He was defaulting on loans, double-dipping on collateral, and begging his wealthy friends for help. Where was the money going? The bust On the morning of March 8, 2012, half a dozen FBI agents raided Kurniawanâs home in Arcadia. Inside, they discovered an unbelievable scene: - 200+ old wine bottles in various states of forgery
- 19k+ fake, artificially aged printed labels from the worldâs 27 rarest wines, and detailed notes on how to fabricate them
- Buckets full of corks, sealing wax, glue, and stencils
- Rubber stamps bearing the names of famed châteaus
- Formulas for recreating the taste profiles of rare vintages using a combination of much cheaper wines [crime scene photos] Photos from the scene of the crime (US Department of Justice) Kurniawan was arrested on charges of forgery and fraudulently obtaining millions of dollars in loans. On December 9, 2013, his case went to trial. Prosecutors laid out the [case]( that Kurniawan was the âbiggest and most successful wine counterfeiter in the world,â citing the numerous inaccuracies with the bottles heâd sold (missing accent marks, inaccurate dates, misspellings). They contended that Kurniawan had kept original bottles from rare vintages heâd polished off and then refilled with a combination of much cheaper wines, using his extraordinary palette to mimic flavor profiles. Heâd ordered labels en masse abroad, then artificially aged them to appear real. For the final touch â the cork â heâd used a blade corkscrew that left no traces of tampering and dipped the top in wax. The bottles he purported to sell were so rare that many collectors didnât even know how they were supposed to taste. During the trial, one expert testified that up to 75% of the fakes that had surfaced on the market in 2006 originated from Kurniawan. âFor a while, the magic show worked. But there was just one problem: There was no magic cellar,â US attorney Joseph Facciponti said at trial. âThere were only the defendantâs lies⦠just a bunch of smoke and mirrors.â Kurniawanâs lawyer, Jerome Mooney, tried to make a case that the materials discovered in his clientâs home were merely ornamental and intended to be used for home decor. The jury didnât buy it: 9 days later, Kurniawan was found [guilty]( on all counts and sentenced to 10 years in prison. [Evidence photos] Evidence presented at Rudy Kurniawanâs trial (STAN HONDA/AFP via Getty Images) All told, it was estimated that Kurniawan duped collectors out of [anywhere]( from $35m to $150m+ through private sales and auctions. How was it possible that one man couldâve manufactured millionsâ worth of fake wine in his kitchen over a few short years? Some, like Ponsot (the aggrieved vineyard owner) think Kurniawan [had accomplices](. But Mooney counters that the extent of his clientâs fraud was exaggerated: âMy personal theory is that he just wanted to belong,â he told The Hustle in a recent phone call. âHis only entrance to that social circle was wine â wine was his entire identity.â The aftermath In November of 2020, after serving 9 years in correctional facilities in California and Texas, Kurniawan was released into the hands of immigration officials. Last month, with little fanfare, he was escorted onto a plane and quietly deported to Indonesia. In elite oenophile circles, it was blockbuster news: The saga of the most notorious wine forger in history had finally come to an end. Some see Kurniawan as a hero â a Robinhood-type figure who duped greedy billionaires and proved that they couldnât tell the difference between a $500 bottle and $10k bottle. Others say he irreparably tarnished the collectorâs market. The blog Wine Fraud [estimates]( that the value of Kurniawan wines that are still out in the open market today exceeds $550m. A decade later, the wine auction market is still [reeling]( from the controversy. [Kurniawan in a deposition] Rudy Kurniawan in a deposition 10 years ago (US Department of Justice) A free man, Kurniawan is now looking to get back in the game. According to Mooney, who is still his lawyer, the counterfeiter is still settling in back home and has received many inquiries about working as a wine tasting consultant. A comeback is in order â and this time, he claims, itâll be above the table. âThe world,â said Mooney, âwill hear from Rudy again.â Share & discuss this story on: [FACEBOOK](facebook.com/1440219672904565/posts/2861970050729513/) [OUR WEBSITE](
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