
Bill Koch has fired the latest salvo in his crusade against counterfeit wines, filing a suit in a Manhattan federal court today against Christie's International, accusing the venerable London-based auction house of conspiracy to defraud and aiding and abetting fraud. In the complaint, Koch claims to have found witnesses who can testify that they engraved the so-called Jefferson Bordeauxs, several bottles of wine uncovered by German dealer Hardy Rodenstock, who claimed the wines were ordered for Thomas Jefferson. Christie's sold several of those wines. Koch also alleges that several other rare wines he bought from Christies are fakes.
Koch has filed multiple suits since he first came to believe that four Jefferson Bordeauxs he bought from London and Chicago retailers are fakes. He is currently suing Rodenstock in New York. After hiring investigators to comb his 35,000-bottle cellar, Koch has filed suits over other allegedly fake wine, including cases against New York auction houses Zachys and Acker Merrall & Condit, as well as the Chicago Wine Company and collector Eric Greenberg.
Christie's has been a leading source for rare and collectible wines for decades. The suit alleges that, "Christie's and Rodenstock are involved in a continuing scheme to sell counterfeit wines." Koch claims that former Christie's wine director Michael Broadbent knew of questions regarding the provenance of the Jefferson wines before the first one was sold in 1985 for $156,000. The complaint says that two German engravers, who are not identified by name, told investigators that Rodenstock hired them to engrave several bottles, including the bottles engraved "Th.J."
Koch also alleges that he bought 32 counterfeit wines from Christie's for more than $33,700. "To me the simple, straightforward solution to this problem was for Christie's to recognize its wine department was acting as an independent, rogue division, admit it, and clean it up immediately," said Koch. "That would have resulted in an easy settlement with me and greatly enhanced Christie’s reputation in the collectors’ world as an auction house that will not tolerate selling fakes of any kind."
"We have great respect for Mr. Koch," said Toby Usnik, a spokesman for Christie's in New York. "We believe the allegations in this complaint are incorrect." Neither Broadbent nor Rodenstock could be reached at press time.
Louis Robichaux — Highland Village, Texas — March 31, 2010 11:33pm ET
Jon Manning — Cedar Key, Florida — April 5, 2010 3:56pm ET
I love Koch going after the auction houses. I have bought some wine at auction that I suspected were frauds after I opened them, but I don't have the money Koch has to go after the guilty party or parties. Maybe this will have a tendency to have most parties clean up their acts. I'm sure it will never cease, but at least it will help if people like Koch make everybody a little more apprehensive about their actions.
K & L Wine Merchants — Hollywood, California — April 6, 2010 6:14pm ET
I find it interesting that Broadbent recently won his suit against the publisher of Billionaires' Vinegar, but is still being exposed to calumny here in the US. Libel laws clearly differ between the two countries...
Rahul Gujral — Dallas, TX , USA — April 6, 2010 10:55pm ET
I'm glad that someone is standing up for the rights of the consumer. As others say, most of us wine drinkers can't afford to spend ungodly amounts on prosecuting those that are out to make a quick buck (even if they aren't out to cheat us wine lovers). That's where there is a real role for someone like Bill Koch to play. I don't know this for a fact, but I would guess that as a billionaire he has other things that he could spend his time on that would impact his bottom line more directly. I'm glad he's spending some of his time (& cash) on keeping the brokers honest.
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Christie's, Zachys and all other Koch targets should recognize that they are dealing with a crusty, type-A who is very rich and very pissed off. If his life story is any indication, he will not drop this issue any time soon ... and he's not likely to run out of money in the near future either. It's in the industry's best interest to find a solution that satisfies Koch and restores the confidence of the wine investing public.