International Wine Counterfeiting Ring Busted in Major Raids
In a coordinated effort, investigators from France, Italy, and Switzerland have successfully dismantled a sophisticated criminal organization accused of selling counterfeit bottles of inexpensive red wine for a staggering €15,000 each. These simultaneous raids, supported by Europol, occurred across 14 locations, including major cities like Milan and Turin, as part of an extensive investigation that commenced in 2021.
Authorities disclosed that the gang operated out of Italy, where they produced fraudulent wine, which is believed to have generated around €2 million in sales. The counterfeit products were subsequently shipped to an Italian airport before being exported globally, where they were marketed at inflated prices by unsuspecting wine merchants. The gang’s ability to sell these bottles at such exorbitant rates was facilitated by their counterfeiting of wines that hold the esteemed French Protected Designation of Origin (Appellation d’Origine Protégée, or AOP).
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The AOP designation represents the highest standard in the European Union’s wine classification system. To qualify for this prestigious label, wine must be produced from grapes cultivated in a designated geographical area, adhering to rigorous production methods and regulations.
Among the items seized during the raids were wine labels, wax materials, technical machinery for recapping bottles, electronic equipment valued at approximately €1.4 million, and over €100,000 in cash.
Caught Red-Handed
A 40-year-old Russian national with a history of prior convictions is thought to be a central figure in this case. “His actions were instrumental in establishing a transnational counterfeiting organization,” stated Dijon public prosecutor Olivier Caracotch.
The suspect was reportedly apprehended in the act of completing a transaction with a printer at Milan Malpensa airport. According to the Italian gendarmerie and the French judiciary, the criminal network collaborated with printing services to produce the fake labels. The Russian individual, who was previously known as Aleksandr Iugov, has a criminal record that dates back a decade.
The Dijon prosecutor mentioned that the suspect “should be presented promptly to determine the possibility of his indictment.” Additionally, a French citizen has also been charged in Dijon for involvement in “money laundering and organized fraud.”
Dijon is located in the French region of Burgundy, renowned for producing Bourgogne wine. This is one of the varieties that the gang is alleged to have exploited, particularly bottles produced by the prestigious Romanée-Conti domain, which are known to fetch prices in the thousands, and in some cases, even hundreds of thousands of euros.
However, the year 2024 has brought challenges, as adverse wet conditions across France have severely impacted numerous wine-producing regions, leading to significant reductions in output for many producers.
Wine fraud and mislabeling are not new issues in the industry. In response, the European Union is set to implement a new set of regulations for all wines and wine products starting from the 2024 harvest. Under this updated legislation, every bottle of wine sold within the EU, irrespective of its country of origin, will be required to feature nutritional information and a comprehensive list of ingredients.