A British man has been spared a prison sentence after admitting a £10 million scam in which elderly people in the US were duped into investing in Scotch whisky.
Casey Alexander, 27, convinced pensioners in the States to buy barrels of Scotch with the promise of huge returns.
He made trips across the pond to speak to clients and said he was a representative of a firm called Vintage Whisky Casks.
Alexander, of London, was arrested in Ohio in 2022 after an FBI sting operation involving an informant posing as a potential client.
He admitted conspiracy to commit wire fraud and has now been sentenced to three years of probation by District Judge Solomon Oliver.
Advertisement
Alexander was also ordered to pay £158,000 in restitution for his role in the scam to the victims.
He worked for three companies that carried out the fraud, which also involved rare wines.
He told potential investors that distillers liked to have their new casks sold for cashflow reasons and that they would double in value in three years.
People contacted by Alexander and his associates say they were told they would be invited to a party for “high-end investors” in Scotland if they bought more whisky.
They were also told the barrels would be held at a storage facility in Europe until they were ready to be sold.
The FBI has identified more than 150 victims of the fraud who invested more than £10.1 million in the companies.
Advertisement
In a statement, the US Attorney’s Office for the Northern District of Ohio said: “Alexander and others involved, engaged in a cold-calling scheme to target elderly investors throughout the United States.
“They used aggressive and deceptive tactics and promised large returns if the victims participated in wine and whisky investments.
“They told victims that they could buy a portfolio of fine wines and whisky on their behalf, and then hold the purchase in a bonded warehouse located in Europe until sold for a profit.
“Alexander and his team were able to convince the victims across the country to wire funds or make checks out to one or more suspect companies to participate in the investment opportunities.
“After the initial investments were made, victims were encouraged, and eventually convinced, to continue investing in order to secure larger returns.”
Advertisement
The scam came to light in 2020 when a victim’s son notified police in Ohio that their relative had been defrauded out of more than £250,000 over an 18-month period.
Officers then discovered similar complaints from other victims throughout the US and the case was investigated by the FBI. To date no victim has received a return on their investment.
In a sworn affidavit provided to the court, FBI special agent Matthew E Scalisi described one victim’s account of his dealings with Alexander.
He said: “Victim 3 advised that in or around December 2020, Victim 3 received a call from a defendant, later identified as Alexander, a United Kingdom national, asking if Victim 3 was interested in a whisky investment opportunity.
“Victim 3 advised that Alexander sent videos and brochures via email.
Advertisement
“Victim 3 stated that Alexander explained that the distillers liked to have their new casks sold for cash flow reasons. Alexander said that if Victim 3 purchased casks, the casks would double in value in three years.”
