A U.K. national was sentenced to three years of probation and ordered to pay restitution for his role in a $13 million wine and whiskey investment scam that targeted older Americans, the U.S. Attorney's Office for the Northern District of Ohio announced Wednesday.
Casey Alexander, 27, of London, England, previously pleaded guilty to conspiracy to commit wire fraud. He was sentence to three years of probation and ordered to pay $202,195, 58 in restitution.
According to court documents, Alexander and others involved in the cold-calling scheme targeted elderly investors in the U.S., using "aggressive and deceptive tactics" to induce the victims to make wine and whiskey investments. The scammers told victims they would purchase fine wines and whiskeys on their behalf, and store them in a bonded warehouse in Europe until they could be sold for profit, and promised large returns on the investments.
Once a victim made an investment, the scammers would convince them to continue investing in order to see larger returns. They convinced victims across the country to wire finds or make checks out to "suspect companies" involved in the scheme.
The scheme came to light when a victim's son notified the Highland Heights Police Department in 2020. He told police the victim was scammed out of more than $300,000 over the course of 18 months. While investigating, HHPD learned of similar complaints across the country from victims reporting a "wine scam."
The investigation was then handled by the FBI. To date, the agency has identified more than 150 victims in the U.S. Altogether, the known victims invested more than $13 million into the wine and whiskey fraud scheme.
The sentence comes during Elder Abuse Awareness Month, when U.S. Attorney's Offices around the country have been highlighting various scams targeting seniors. The investigation of this case came as part of the Department of Justice's Elder Justice Initiative Program, originating from the Elder Abuse Prevention and Prosecution Act of 2017 (EAPPA).
--with reporting by TMX
