All language subtitles for American Greed s11e16 Wine Women and Fraud
Afrikaans
Akan
Albanian
Amharic
Arabic
Armenian
Azerbaijani
Basque
Belarusian
Bemba
Bengali
Bihari
Bosnian
Breton
Bulgarian
Cambodian
Catalan
Cebuano
Cherokee
Chichewa
Chinese (Simplified)
Chinese (Traditional)
Corsican
Croatian
Czech
Danish
Dutch
English
Esperanto
Estonian
Ewe
Faroese
Filipino
Finnish
French
Frisian
Ga
Galician
Georgian
German
Greek
Guarani
Gujarati
Haitian Creole
Hausa
Hawaiian
Hebrew
Hindi
Hmong
Hungarian
Icelandic
Igbo
Indonesian
Interlingua
Irish
Italian
Japanese
Javanese
Kannada
Kazakh
Kinyarwanda
Kirundi
Kongo
Korean
Krio (Sierra Leone)
Kurdish
Kurdish (SoranĂ®)
Kyrgyz
Laothian
Latin
Latvian
Lingala
Lithuanian
Lozi
Luganda
Luo
Luxembourgish
Macedonian
Malagasy
Malay
Malayalam
Maltese
Maori
Marathi
Mauritian Creole
Moldavian
Mongolian
Myanmar (Burmese)
Montenegrin
Nepali
Nigerian Pidgin
Northern Sotho
Norwegian
Norwegian (Nynorsk)
Occitan
Oriya
Oromo
Pashto
Persian
Polish
Portuguese (Brazil)
Portuguese (Portugal)
Punjabi
Quechua
Romanian
Romansh
Runyakitara
Russian
Samoan
Scots Gaelic
Serbian
Serbo-Croatian
Sesotho
Setswana
Seychellois Creole
Shona
Sindhi
Sinhalese
Slovak
Slovenian
Somali
Spanish
Spanish (Latin American)
Sundanese
Swahili
Swedish
Tajik
Tamil
Tatar
Telugu
Thai
Tigrinya
Tonga
Tshiluba
Tumbuka
Turkish
Turkmen
Twi
Uighur
Ukrainian
Urdu
Uzbek
Vietnamese
Welsh
Wolof
Xhosa
Yiddish
Yoruba
Zulu
Would you like to inspect the original subtitles? These are the user uploaded subtitles that are being translated:
1
00:00:00,430 --> 00:00:07,290
In this episode of American Greed, John
Fox makes millions selling fine wine
2
00:00:07,290 --> 00:00:10,070
and lives like a classic rock star.
3
00:00:10,810 --> 00:00:14,970
Every day John would come to work in a
different car, a different fancy car.
4
00:00:15,530 --> 00:00:17,830
Ferraris, Maseratis, multiple Mercedes.
5
00:00:19,070 --> 00:00:24,850
Fox's customers are enticed with low
prices and they ignore the financial
6
00:00:24,850 --> 00:00:25,970
hangover to come.
7
00:00:26,470 --> 00:00:29,030
Stay away, stay away.
8
00:00:30,670 --> 00:00:32,409
Fox, too, is reckless.
9
00:00:32,890 --> 00:00:39,290
He steals clients' money and spends
nearly $1 million on scores of women he
10
00:00:39,290 --> 00:00:40,290
meets online.
11
00:00:40,610 --> 00:00:42,730
I think he was definitely a sex addict.
12
00:00:44,110 --> 00:00:50,770
As Fox's $55 million wine fraud comes
crashing down, one of Fox's sugar babies
13
00:00:50,770 --> 00:00:52,990
turns a nasty trick.
14
00:00:53,650 --> 00:00:57,190
Emailing, texting, calling, pay me, pay
me, pay me.
15
00:00:58,019 --> 00:01:00,640
If you're going to play, you're usually
going to have to pay.
16
00:01:19,240 --> 00:01:24,940
In Berkeley, California, there's a
trendy coffee shop called the Artiste
17
00:01:26,250 --> 00:01:32,870
And in 2015, it's a hot spot for a 65
-year -old Casanova named John Fox.
18
00:01:34,090 --> 00:01:39,790
The baristas are agog at these scantily
clad 20 -somethings who come in to date
19
00:01:39,790 --> 00:01:42,050
a man nearly three times their age.
20
00:01:43,590 --> 00:01:48,590
I got a call from the employees of
Artist Coffee, and they had been
21
00:01:48,590 --> 00:01:53,090
John Fox come into their store for
years, usually twice a week, meeting
22
00:01:53,090 --> 00:01:54,730
different women every time.
23
00:01:55,790 --> 00:01:58,250
It's a parlor game for the baristas.
24
00:01:58,850 --> 00:02:02,590
Which high -end sports car will John Fox
pull up in today?
25
00:02:03,210 --> 00:02:04,210
His Ferrari?
26
00:02:05,050 --> 00:02:07,250
His electric blue Corvette?
27
00:02:08,090 --> 00:02:14,690
And does the stunning young woman at his
side know that Fox is married and has a
28
00:02:14,690 --> 00:02:16,370
daughter about her age?
29
00:02:17,230 --> 00:02:21,970
And it got to the point where the
employees were actually kind of
30
00:02:21,970 --> 00:02:26,760
this. And they started to
surreptitiously take pictures of Fox
31
00:02:26,760 --> 00:02:32,680
girlfriends. And I thought that was
very, very telling, just how prolific a
32
00:02:32,680 --> 00:02:33,680
dater John Fox was.
33
00:02:35,860 --> 00:02:38,920
Who is this mysterious Silver Fox?
34
00:02:39,740 --> 00:02:41,740
And where does he get his money?
35
00:02:48,490 --> 00:02:54,350
John Fox was, I believe, originally a
waiter in a restaurant and floated into
36
00:02:54,350 --> 00:02:58,550
the retail wine world on a very small
scale.
37
00:02:59,650 --> 00:03:02,970
But a rising tide lifts all boats.
38
00:03:03,350 --> 00:03:10,010
And for John Fox, who founds a tiny wine
store in 1980, the Berkeley area is a
39
00:03:10,010 --> 00:03:11,470
rising tide indeed.
40
00:03:14,410 --> 00:03:20,310
With famous chefs like Alice Waters and
her Chez Panisse, Berkeley is the
41
00:03:20,310 --> 00:03:22,470
vanguard of a food and wine renaissance.
42
00:03:23,230 --> 00:03:29,110
He was at the right place at the right
time, and there was a need for his
43
00:03:29,110 --> 00:03:30,110
services.
44
00:03:31,710 --> 00:03:36,510
Still, Fox would be just a local wine
merchant whom no one outside of Berkeley
45
00:03:36,510 --> 00:03:40,270
has ever heard of if he didn't make one
key decision.
46
00:03:41,130 --> 00:03:43,790
He goes big into something called...
47
00:03:44,190 --> 00:03:45,270
Pre -arrivals.
48
00:03:45,630 --> 00:03:50,530
With pre -arrivals, consumers pay up
front for wine that's still sitting in
49
00:03:50,530 --> 00:03:51,530
France.
50
00:03:51,570 --> 00:03:56,150
The buyers might not get delivery for
several months or even years.
51
00:03:57,530 --> 00:04:02,990
Pre -arrival is a concept that's unique,
I believe, to the wine world.
52
00:04:04,130 --> 00:04:09,350
Most products you buy, you're going to
get them upon purchase. You go on the
53
00:04:09,350 --> 00:04:11,650
Internet and buy a pair of shoes, you
expect to have that.
54
00:04:12,040 --> 00:04:14,400
End of the week, it's on back order,
maybe a few weeks, whatever.
55
00:04:15,320 --> 00:04:19,660
But with wine, I can't think of too many
other retail purchases where you're
56
00:04:19,660 --> 00:04:21,800
okay with waiting for years to get this
thing.
57
00:04:23,420 --> 00:04:27,220
Why would you do it? Well, if you think
that prices are going to go up later,
58
00:04:27,380 --> 00:04:30,720
then it's better to buy it now and
you'll get it for less money.
59
00:04:32,180 --> 00:04:35,640
And it's reasonable to think the prices
will go up.
60
00:04:36,250 --> 00:04:41,930
Wines purchased on pre -arrival usually
come from the rarest, most coveted
61
00:04:41,930 --> 00:04:42,930
vineyards on earth.
62
00:04:43,510 --> 00:04:48,970
Domaine Romani Conti, Chateau Lafitte,
Chateau Petru.
63
00:04:50,150 --> 00:04:55,790
We're talking about wines that needed to
spend not just years, but decades in
64
00:04:55,790 --> 00:05:00,710
conditions where they could very slowly
evolve and all the things that
65
00:05:00,710 --> 00:05:03,730
collectors hope will happen to good
French wine that they'll...
66
00:05:04,430 --> 00:05:09,850
Gain complexity and gain nuances. And
when you pull the cork on that bottle,
67
00:05:09,850 --> 00:05:13,950
sorts of wonderful aromas will come out.
And you'll say, wow, this was worth
68
00:05:13,950 --> 00:05:14,950
waiting for.
69
00:05:16,770 --> 00:05:20,890
And for those who delay gratification,
there's a reward.
70
00:05:21,670 --> 00:05:25,950
Fortunes can be made if the wine is well
received by influential critics.
71
00:05:27,410 --> 00:05:33,090
Robert Parker, for example, moves
markets with his 100 -point rating
72
00:05:33,980 --> 00:05:39,200
Robert Parker gives 100 points or 99
points to a wine, and the next morning,
73
00:05:39,200 --> 00:05:40,220
wine is doubled in price.
74
00:05:42,320 --> 00:05:48,620
I was flipping wine, drinking it, and,
you know, it was great. You know, it
75
00:05:48,620 --> 00:05:49,620
off the years.
76
00:05:50,840 --> 00:05:55,640
In the 90s, New Yorker George Ziccarelli
works in the film and television
77
00:05:55,640 --> 00:05:56,640
business.
78
00:05:57,080 --> 00:06:01,820
But he has a side hustle, speculating in
wine futures.
79
00:06:03,440 --> 00:06:08,840
With the year 2000 approaching,
Ziccarelli bets that wine collectors
80
00:06:08,840 --> 00:06:09,840
stock up.
81
00:06:10,000 --> 00:06:11,480
And I said, you know what?
82
00:06:11,840 --> 00:06:15,120
Somebody's going to want this stuff for
the party of the millennia and the most
83
00:06:15,120 --> 00:06:16,120
expensive wine.
84
00:06:17,560 --> 00:06:23,040
John Fox's wine shop, Premier Cru,
becomes Ziccarelli's main supplier.
85
00:06:24,280 --> 00:06:29,400
Premier Cru is known for its low prices,
always well below the competition.
86
00:06:30,650 --> 00:06:35,690
And this is how I got to know John Fox,
because I brought two cases of 1990
87
00:06:35,690 --> 00:06:39,610
Roman and Conti from him, and it was
delivered right away.
88
00:06:40,270 --> 00:06:46,450
So, I mean, his prices were cheaper than
anybody else. So, you know, wow, what a
89
00:06:46,450 --> 00:06:47,450
score I made.
90
00:06:48,330 --> 00:06:53,890
While Ziccarelli builds a cellar of
extremely rare wine, his friends laugh
91
00:06:53,890 --> 00:06:56,470
him, thinking he's lost his mind.
92
00:06:57,070 --> 00:07:01,750
And then in 1999, Ziccarelli sells his
collection through an auction at
93
00:07:01,750 --> 00:07:05,950
Sotheby's, where it's touted as the
Millennium Superlot.
94
00:07:06,730 --> 00:07:11,290
His wine gets top billing on the cover
of the auction catalog.
95
00:07:11,990 --> 00:07:17,010
Well, it was a really big thing. I mean,
first of all, you know, even...
96
00:07:18,400 --> 00:07:23,640
Very well. I don't know how I was able
to get five cases of 1990 Romani Conti.
97
00:07:23,680 --> 00:07:26,440
It's hard now. I mean, it's impossible.
98
00:07:28,180 --> 00:07:33,780
The lot sells for just over a quarter
million dollars, which at the time is a
99
00:07:33,780 --> 00:07:34,780
world record.
100
00:07:36,540 --> 00:07:39,040
It's been broken many times over since
then.
101
00:07:40,500 --> 00:07:41,860
You know, the funny thing is.
102
00:07:42,270 --> 00:07:47,110
Until everybody saw this catalog,
everybody thought I was stupid and
103
00:07:47,490 --> 00:07:50,270
Everybody at work was putting me down.
104
00:07:51,410 --> 00:07:53,930
I had the last laugh, which was great.
105
00:07:54,970 --> 00:07:56,370
I buy it to drink it.
106
00:07:58,130 --> 00:08:01,330
Paul Higgins is a wine collector in St.
Louis.
107
00:08:02,570 --> 00:08:08,230
There are other things that I can try to
invest in if I want to do that, but I
108
00:08:08,230 --> 00:08:11,030
don't buy it to trade it. I don't buy it
to...
109
00:08:12,570 --> 00:08:17,190
show it to friends at parties. I buy it
to drink it and to share it with people
110
00:08:17,190 --> 00:08:18,190
at parties.
111
00:08:19,290 --> 00:08:24,970
Higgins first orders pre -arrival wine
from Premier Cru in 2000 when a co
112
00:08:24,970 --> 00:08:29,650
-worker tells him that the 2000 vintage
in Bordeaux is shaping up to be
113
00:08:29,650 --> 00:08:31,330
historically great.
114
00:08:31,790 --> 00:08:33,789
And I said, okay, I'll try that.
115
00:08:34,010 --> 00:08:37,190
And eventually I did get the wine and I
did save some money.
116
00:08:37,510 --> 00:08:43,809
And that was how I learned about that
whole pay now, get it later world of
117
00:08:44,850 --> 00:08:49,830
His only complaint about Premier Crewe
is the time it takes to get his wine.
118
00:08:50,930 --> 00:08:53,130
Everything seemed to be ship shape.
119
00:08:53,890 --> 00:08:56,730
The wine took a while, usually longer
than you wanted.
120
00:08:57,070 --> 00:09:00,990
But if you're buying a Bordeaux, some
people think you shouldn't even touch
121
00:09:00,990 --> 00:09:02,710
bottle until it's at least 10 years old.
122
00:09:03,130 --> 00:09:06,670
So if you have to wait two or three
years for a bottle, what does that
123
00:09:06,750 --> 00:09:07,750
really?
124
00:09:08,680 --> 00:09:12,860
Higgins, like George Ziccarelli, is
happy with Premier Crewe.
125
00:09:13,380 --> 00:09:18,680
And by the early 2000s, John Fox has
made his mark around the globe.
126
00:09:20,120 --> 00:09:26,620
He counts as customers at Abayo
Ogunlesi, a private equity investor and
127
00:09:26,620 --> 00:09:32,600
member of Goldman Sachs, and Arthur
Patterson, an early investor in
128
00:09:33,740 --> 00:09:36,840
Arthur Patterson is a very private man.
129
00:09:37,640 --> 00:09:43,580
But he reportedly has one of the most
beautiful wine cellars, which he has in
130
00:09:43,580 --> 00:09:44,720
Big Sur in California.
131
00:09:45,300 --> 00:09:47,720
You can't ask for a more sophisticated
investor.
132
00:09:49,580 --> 00:09:55,300
I doubt there's any wine shop in
America, or anywhere in the world maybe,
133
00:09:55,300 --> 00:10:02,020
had such an enormous customer base
globally as Premier Crew in
134
00:10:02,020 --> 00:10:03,020
Berkeley, California.
135
00:10:04,240 --> 00:10:09,800
And what is it that makes the global
elite beat a path to John Fox's door?
136
00:10:11,240 --> 00:10:12,240
Bargains.
137
00:10:12,560 --> 00:10:15,160
Deals that belt out a siren song.
138
00:10:16,000 --> 00:10:19,620
If you want these wines and you see that
price, and you know they've been in
139
00:10:19,620 --> 00:10:24,980
business for a decade, you just grab it.
That's called an avarice.
140
00:10:25,960 --> 00:10:28,380
You'll buy it now, ask questions later.
141
00:10:30,720 --> 00:10:33,460
Paul Higgins has a different point of
view.
142
00:10:34,030 --> 00:10:39,410
He believes that while Fox's prices are
low, they are not suspiciously low.
143
00:10:40,110 --> 00:10:45,950
He figures Fox simply has a more direct
source to find wine than his competitors
144
00:10:45,950 --> 00:10:46,950
do.
145
00:10:47,390 --> 00:10:53,410
The wine world has so many touch points
of distribution from the vineyard to
146
00:10:53,410 --> 00:10:54,410
your dinner table.
147
00:10:54,610 --> 00:10:58,330
And the more people that touch that
wine, the more expensive it is. So
148
00:10:58,330 --> 00:11:03,090
relatively speaking, my experience was
that Premier Cru's prices were good.
149
00:11:03,770 --> 00:11:05,750
But they weren't ridiculously good.
150
00:11:08,590 --> 00:11:14,750
Up next, Fox's low prices are actually
very costly.
151
00:11:15,770 --> 00:11:18,170
Looked too good to be true, was too good
to be true.
152
00:11:19,130 --> 00:11:24,910
And later, wine connoisseur John Fox
follows his other passion.
153
00:11:25,450 --> 00:11:27,490
I think he was definitely a sex addict.
154
00:11:28,090 --> 00:11:32,230
I mean, you know, that's a lot of money
to spend on online dating.
155
00:11:46,190 --> 00:11:51,770
For John Fox and his premier crew wine
store in Berkeley, California, the early
156
00:11:51,770 --> 00:11:53,970
2000s are boom times.
157
00:11:55,710 --> 00:12:02,450
The market explodes as the newly rich in
Asia dive headfirst, sometimes
158
00:12:02,450 --> 00:12:04,950
literally, into fine wine.
159
00:12:05,410 --> 00:12:10,630
Part of what happened was that the whole
world's thirst for wine sort of changed
160
00:12:10,630 --> 00:12:13,950
dramatically after Hong Kong dropped a
tariff.
161
00:12:15,150 --> 00:12:18,070
after auctions sort of shot up all
around the world.
162
00:12:18,930 --> 00:12:24,350
And wine all of a sudden was seen as an
investment vehicle for a lot of people.
163
00:12:25,970 --> 00:12:31,230
Because they live all over the world,
Fox's clients who buy wine on pre
164
00:12:31,230 --> 00:12:33,970
sometimes never see their purchase.
165
00:12:34,370 --> 00:12:39,990
Many are content, believing their wine
is sitting in Berkeley, chilling at 55
166
00:12:39,990 --> 00:12:41,150
degrees Fahrenheit.
167
00:12:42,120 --> 00:12:47,280
The reason they were docile is something
very clever that John Fox did. He had
168
00:12:47,280 --> 00:12:48,239
this warehouse.
169
00:12:48,240 --> 00:12:51,600
He said, I'm going to sell you that wine
at the lowest price.
170
00:12:52,300 --> 00:12:56,020
Not sure when it's going to come in, but
when it does, it's not going to be
171
00:12:56,020 --> 00:12:57,900
ready to drink. You know that. I know
that.
172
00:12:58,520 --> 00:13:03,460
So I will put it in my warehouse under
perfect storage conditions for you.
173
00:13:04,100 --> 00:13:09,640
And unlike other storage warehouses, I
am going to store it for you at no cost
174
00:13:09,640 --> 00:13:11,240
for as long as you'd like.
175
00:13:12,440 --> 00:13:16,380
It's appreciating in value and likely
taste and whatever else.
176
00:13:16,800 --> 00:13:19,360
So it's kind of a win -win from the
customer's perspective.
177
00:13:20,620 --> 00:13:24,540
All the while, that's kind of giving Fox
his window of opportunity to perpetrate
178
00:13:24,540 --> 00:13:25,540
his scheme.
179
00:13:26,660 --> 00:13:28,780
It's a remarkably simple scheme.
180
00:13:29,340 --> 00:13:33,060
In some cases, Fox just doesn't have the
wine.
181
00:13:33,520 --> 00:13:37,740
He's busy and never gets around to
actually ordering it from France.
182
00:13:38,020 --> 00:13:39,540
He'll worry about it later.
183
00:13:40,880 --> 00:13:43,280
Que sera, sera, whatever will be, will
be.
184
00:13:44,120 --> 00:13:50,080
Only when you asked for that wine to be
shipped to you did John Fox begin to
185
00:13:50,080 --> 00:13:52,480
jump around and see if he could find it
for you.
186
00:13:53,440 --> 00:13:58,220
In other cases, Fox does, in fact, have
a client's wine in his warehouse.
187
00:13:58,920 --> 00:14:03,060
The problem is, several other clients
think it's theirs, too.
188
00:14:03,950 --> 00:14:09,210
So John Fox also sold one bottle of wine
multiple times. He did this over and
189
00:14:09,210 --> 00:14:12,750
over again. And he was very good about
it. He didn't get caught.
190
00:14:14,210 --> 00:14:18,690
Fox gets away with it because most of
his clients are in for the long haul.
191
00:14:19,050 --> 00:14:21,990
And only a small minority take delivery.
192
00:14:23,470 --> 00:14:26,630
And those who do are often satisfied.
193
00:14:27,590 --> 00:14:32,670
It was no obvious red flag initially,
other than it took them too long.
194
00:14:33,290 --> 00:14:39,030
But too long was always kind of a
debatable period of time because of the
195
00:14:39,030 --> 00:14:41,510
nature of buying wine futures to begin
with.
196
00:14:41,730 --> 00:14:45,850
It didn't scream out to me that this was
some sort of wine Ponzi scheme at the
197
00:14:45,850 --> 00:14:46,850
time.
198
00:14:47,590 --> 00:14:53,370
So he had this huge juggling act going
on by selling one bottle of wine
199
00:14:53,370 --> 00:14:56,670
multiple, multiple times. But he managed
to get away with it for many, many
200
00:14:56,670 --> 00:14:57,670
years.
201
00:14:58,970 --> 00:15:00,850
Not only does he get away with it.
202
00:15:01,930 --> 00:15:05,410
John Fox prospers beyond his wildest
dreams.
203
00:15:06,710 --> 00:15:13,350
He rides an epic wave created by the
once -in -a -lifetime combination of
204
00:15:13,350 --> 00:15:20,170
fortunes in China and ideal growing
conditions. Perfect summers in southwest
205
00:15:20,170 --> 00:15:27,050
France. There was a great vintage 2009
in Bordeaux. There was possibly even a
206
00:15:27,050 --> 00:15:29,390
greater vintage 2010 in Bordeaux.
207
00:15:30,240 --> 00:15:33,740
People wanted that wine. They wanted to
lock it up. And they knew it was wine
208
00:15:33,740 --> 00:15:38,960
that was going to be many, many, many
years, decades even, before it was at
209
00:15:38,960 --> 00:15:40,000
ideal drinking point.
210
00:15:40,220 --> 00:15:42,220
And so the money just flowed in.
211
00:15:44,080 --> 00:15:47,480
And John Fox finds plenty of ways to
spend it.
212
00:15:50,060 --> 00:15:56,680
In 2011, he buys a building that once
housed a run -down art supply store,
213
00:15:56,680 --> 00:15:57,720
a renowned architect,
214
00:15:58,430 --> 00:16:03,030
and transforms it into a sparkling,
state -of -the -art retail store in
215
00:16:03,030 --> 00:16:04,030
Berkeley.
216
00:16:04,750 --> 00:16:10,150
Oh, gorgeous, you know, that's why, come
on, he must be making money, you know,
217
00:16:10,150 --> 00:16:11,350
this place is beautiful.
218
00:16:12,110 --> 00:16:15,850
We walked in, and the floors were made
of bamboo.
219
00:16:16,090 --> 00:16:22,270
The shelves holding the bottles of wine
were mahogany. There were French -type
220
00:16:22,270 --> 00:16:23,610
tapestries on the wall.
221
00:16:24,430 --> 00:16:29,550
The highest -priced wines were kept in a
glass -fronted storage room to the
222
00:16:29,550 --> 00:16:34,150
right as you walked in. So the impact
was stunning. I mean, it was a
223
00:16:34,150 --> 00:16:38,570
experience when you walked in. You were
really overwhelmed by the beauty of that
224
00:16:38,570 --> 00:16:39,570
store.
225
00:16:39,650 --> 00:16:45,790
And former customers say that, you know,
when John opened that store in 2011,
226
00:16:45,990 --> 00:16:47,510
things really seemed to change.
227
00:16:48,240 --> 00:16:52,800
All of a sudden, he seemed to be
catering to the very, very rich. And one
228
00:16:52,800 --> 00:16:57,660
told me that employees had been dressing
in jeans and shirts, but all of a
229
00:16:57,660 --> 00:17:01,200
sudden they were dressing in suits and
they had pseudo -British accents.
230
00:17:04,000 --> 00:17:07,460
There's a lot of pretending going on at
Premier Crew.
231
00:17:08,760 --> 00:17:11,460
Not to mention juicy secret.
232
00:17:13,839 --> 00:17:14,839
Up next.
233
00:17:15,530 --> 00:17:20,470
See how one man spends nearly $1 million
on Internet dating.
234
00:17:33,810 --> 00:17:40,050
Flush with cash because he's running a
fine wine fraud, John Fox moves into a
235
00:17:40,050 --> 00:17:43,070
.3 million mansion in Alamo, California.
236
00:17:43,830 --> 00:17:46,070
a suburb east of San Francisco.
237
00:17:47,510 --> 00:17:51,430
It's a very exclusive community, a very
beautiful community.
238
00:17:51,810 --> 00:17:56,810
He and his wife bought a house there. He
had memberships in two private golf
239
00:17:56,810 --> 00:18:02,110
courses. He paid for his daughter's
college tuition with money that he stole
240
00:18:02,110 --> 00:18:03,550
from Premier Group clients.
241
00:18:03,890 --> 00:18:07,010
And, of course, he had quite a
collection of fine cars.
242
00:18:08,200 --> 00:18:11,700
Very fancy cars, Ferraris, Maseratis,
multiple Mercedes.
243
00:18:12,180 --> 00:18:16,040
You know, he rarely kept a car for more
than a year, always trading in for a new
244
00:18:16,040 --> 00:18:19,480
souped -up muscle car or a new Italian
sports car.
245
00:18:20,900 --> 00:18:26,400
In bohemian Berkeley, where the car of
choice is more like a Toyota Prius,
246
00:18:26,580 --> 00:18:29,780
Fox's flashiness stands out.
247
00:18:32,200 --> 00:18:33,200
Melissa Smith.
248
00:18:33,720 --> 00:18:39,440
who works in sales for Premier Crew,
says Fox's employees take note and give
249
00:18:39,440 --> 00:18:41,380
their boss a thumbs down.
250
00:18:43,000 --> 00:18:49,460
He would always park halfway between the
only handicapped space
251
00:18:49,460 --> 00:18:54,700
and the spot next to it. Every single
day, backed into it. It drove me insane.
252
00:18:54,700 --> 00:18:58,140
There were several times I thought about
calling the local police department
253
00:18:58,140 --> 00:19:00,540
just to have it ticketed or towed.
254
00:19:02,570 --> 00:19:05,630
Fox lives like he has the world on a
string.
255
00:19:06,350 --> 00:19:13,150
He and his wife Gail, nearly 20 years
younger, enjoy fine meals and live la
256
00:19:13,150 --> 00:19:14,150
dolce vita.
257
00:19:14,790 --> 00:19:19,170
But for John Fox, one woman is not
nearly enough.
258
00:19:22,080 --> 00:19:26,840
confessed in his plea agreement that he
had spent $900 ,000 on online dating.
259
00:19:27,160 --> 00:19:34,160
And he dated younger women exclusively,
women in their 20s, even though he was
260
00:19:34,160 --> 00:19:38,920
in his 60s at this time. And although
this might seem strange, there's a whole
261
00:19:38,920 --> 00:19:42,720
world out there that matches up sugar
daddies with sugar babies.
262
00:19:43,000 --> 00:19:47,180
And it's usually older men who have a
lot of money who are looking to date
263
00:19:47,180 --> 00:19:48,180
younger women.
264
00:19:49,360 --> 00:19:53,980
Sometimes for sex, sometimes not for
sex, just to have them on their elbows.
265
00:19:54,820 --> 00:19:59,940
And these younger women, they are often
college students, and they sign up on
266
00:19:59,940 --> 00:20:03,420
these sites, and they have these men pay
for their apartments, they have them
267
00:20:03,420 --> 00:20:05,700
pay tuition, they have them pay rent.
268
00:20:07,680 --> 00:20:10,660
We blurred their faces to protect their
privacy.
269
00:20:11,260 --> 00:20:15,980
But these are among the many, many
images of women John Fox collected
270
00:20:15,980 --> 00:20:21,180
adventures on websites such as
SeekingArrangements .com.
271
00:20:23,020 --> 00:20:28,080
He might pay them $500 to meet them for
a cup of coffee, and if they hit it off,
272
00:20:28,200 --> 00:20:30,700
then they may enter a physical
relationship.
273
00:20:31,540 --> 00:20:38,440
He would basically pay to have these
women maintain a nice lifestyle and come
274
00:20:38,440 --> 00:20:39,560
visit him from time to time.
275
00:20:40,060 --> 00:20:45,800
And he did this for a number of years,
and he met these people, usually in
276
00:20:45,800 --> 00:20:51,560
Berkeley, because they would fly here,
and he would pay them whatever their fee
277
00:20:51,560 --> 00:20:54,760
was, and this went on for a long period
of time.
278
00:20:56,720 --> 00:21:02,300
I spoke with one woman who told me she
was one of John Fox's girlfriends, and
279
00:21:02,300 --> 00:21:07,520
John Fox spent more than $200 ,000 on
her, mostly for her living expenses and
280
00:21:07,520 --> 00:21:08,520
her tuition expenses.
281
00:21:09,290 --> 00:21:11,670
Now, she claims she never had sex with
John Fox.
282
00:21:11,890 --> 00:21:15,290
I don't know that I believe that. I'm
not sure why anyone would spend that
283
00:21:15,290 --> 00:21:17,310
money without having a little more from
the relationship.
284
00:21:18,110 --> 00:21:23,950
But John Fox dated so many women that it
began to attract attention.
285
00:21:26,550 --> 00:21:33,270
At the Artiste Cafe, his local hangout,
baristas brazenly snapped pictures of
286
00:21:33,270 --> 00:21:34,670
Fox and friends.
287
00:21:35,920 --> 00:21:40,640
Melissa Smith says that while Fox often
leaves for afternoon appointments, he
288
00:21:40,640 --> 00:21:44,420
tells employees he's getting his back
cracked.
289
00:21:46,960 --> 00:21:51,960
We had no idea, but literally as far as
we knew he was going to the chiropractor
290
00:21:51,960 --> 00:21:55,300
once or twice a day, it was a shock to
all of us.
291
00:21:57,280 --> 00:21:58,900
Next on American Greed.
292
00:21:59,920 --> 00:22:04,800
John Fox will need more than a
chiropractor to fix the mess he's made
293
00:22:04,800 --> 00:22:05,800
Crew.
294
00:22:18,360 --> 00:22:23,500
John Fox enjoys fast cars and faster
women.
295
00:22:24,260 --> 00:22:27,560
He makes his money selling the
proverbial Brooklyn Bridge.
296
00:22:28,250 --> 00:22:29,370
Fine wine style.
297
00:22:30,490 --> 00:22:32,350
There were the orders that he completely
made up.
298
00:22:32,910 --> 00:22:38,010
I have 300 bottles of this particular
Bordeaux at this particular price.
299
00:22:39,450 --> 00:22:44,210
Come buy them. And he had no contract to
buy any of that. And in his head, at
300
00:22:44,210 --> 00:22:47,890
times, he may have justified it to
himself, and he said that he thought
301
00:22:47,890 --> 00:22:50,230
able to get them or some of them if he
needed to.
302
00:22:52,390 --> 00:22:55,070
Fox is running hard to stay on the
treadmill.
303
00:22:55,840 --> 00:23:01,860
His scheme depends entirely upon new
infusions of cash from wine drinkers
304
00:23:01,860 --> 00:23:05,420
to get their hands on the latest release
from Bordeaux.
305
00:23:05,980 --> 00:23:07,340
But here's the rub.
306
00:23:07,720 --> 00:23:14,320
After two epic years in 2009 and 2010,
the vintages that follow are mediocre,
307
00:23:14,620 --> 00:23:17,140
and the critics' ratings go down.
308
00:23:18,480 --> 00:23:23,620
But despite the disappointing harvest,
the Bordeaux winemakers keep their
309
00:23:23,620 --> 00:23:24,620
high.
310
00:23:24,810 --> 00:23:25,749
Guess what?
311
00:23:25,750 --> 00:23:29,870
Americans said, nuh -uh, I'm not buying,
not buying.
312
00:23:30,710 --> 00:23:34,610
Why should I buy wines that haven't been
praised by the critics? And it's just
313
00:23:34,610 --> 00:23:35,610
getting too expensive.
314
00:23:36,450 --> 00:23:40,070
He got basically zero, zero money on
those.
315
00:23:41,670 --> 00:23:43,410
Fox is in a cash crunch.
316
00:23:45,070 --> 00:23:46,930
And the timing is terrible.
317
00:23:47,930 --> 00:23:53,270
He's just moved into that mansion and
built a beautiful new store.
318
00:23:55,080 --> 00:23:58,280
And now his scheme is becoming
untenable.
319
00:23:59,500 --> 00:24:04,300
Despite his claims, Fox doesn't have
contracts with French Chateau.
320
00:24:04,500 --> 00:24:09,820
He must buy wine at top -dollar retail
prices to satisfy his customers.
321
00:24:12,190 --> 00:24:17,010
You, as a customer, might have 40
bottles outstanding that Premier Crew
322
00:24:17,010 --> 00:24:20,730
you, and you complain enough, and he
would go and buy 10 of them at some
323
00:24:20,730 --> 00:24:23,930
expensive price and losing money on
those bottles and say, I got you these
324
00:24:23,930 --> 00:24:27,130
bottles, and we're going to get the next
30 at some point.
325
00:24:28,290 --> 00:24:30,550
Fox has always been slow to deliver.
326
00:24:31,610 --> 00:24:34,850
Now the wait times become agonizing.
327
00:24:35,890 --> 00:24:39,950
I had kept this little file of wines
that I had ordered in various years,
328
00:24:41,660 --> 00:24:45,840
One day I opened that file on my
computer and I looked at it and said,
329
00:24:46,160 --> 00:24:48,600
this vintage is nearly five years ago.
330
00:24:49,340 --> 00:24:53,380
And I thought, well, I should have that
wine by now.
331
00:24:53,740 --> 00:24:54,980
And then I called them.
332
00:24:56,680 --> 00:25:01,960
Melissa Smith is one of Fox's
salespeople, fielding an ever -growing
333
00:25:01,960 --> 00:25:04,080
calls from concerned customers.
334
00:25:04,980 --> 00:25:10,700
And at first, Smith repeats the company
line that the wine is on its way.
335
00:25:12,179 --> 00:25:16,320
We thought he was organized. That was
the impression he gave everyone, that
336
00:25:16,320 --> 00:25:20,760
he would give us a date that containers
were going to arrive, that that was
337
00:25:20,760 --> 00:25:23,560
actually valid information that he was
pulling out of somewhere.
338
00:25:25,200 --> 00:25:27,880
Initially, they were like, oh, you know,
we've got a container ship.
339
00:25:29,580 --> 00:25:33,060
Ultimately, it was like those bars that
have those signs that say free beer
340
00:25:33,060 --> 00:25:34,060
tomorrow.
341
00:25:34,760 --> 00:25:37,720
That's what ended up happening. But at
the time, they said, oh, you know, it's
342
00:25:37,720 --> 00:25:39,200
going to be on the next container ship
out.
343
00:25:41,130 --> 00:25:46,830
But Smith, who is hired toward the end
of Premier Crew's run, quickly realizes
344
00:25:46,830 --> 00:25:50,410
her faith in her new boss has been
misplaced.
345
00:25:51,930 --> 00:25:57,010
A co -worker welcomes Smith with this
anonymous note stuck to her phone.
346
00:25:57,770 --> 00:25:58,910
Get out now.
347
00:25:59,610 --> 00:26:01,770
Run away while you still have the
chance.
348
00:26:03,530 --> 00:26:07,870
And Smith realizes Fox's business
affairs are out of control.
349
00:26:08,430 --> 00:26:13,850
As suggested by this photograph, she
secretly takes of him at his desk.
350
00:26:14,510 --> 00:26:19,550
It became very clear to me early on that
he was pulling dates out of the air as
351
00:26:19,550 --> 00:26:21,010
far as when things would actually
arrive.
352
00:26:22,270 --> 00:26:27,490
It was always the next container ship.
Didn't make it on this one. I thought,
353
00:26:27,490 --> 00:26:31,950
spidey senses are starting to tingle
here, and I'm going to have to ratchet
354
00:26:31,950 --> 00:26:32,950
the pressure here.
355
00:26:33,490 --> 00:26:36,590
Higgins logs on to Wine Berserkers.
356
00:26:37,020 --> 00:26:42,540
a forum for wine collectors, and
realizes he has unwittingly joined a
357
00:26:42,540 --> 00:26:44,240
of the dispossessed.
358
00:26:44,600 --> 00:26:46,980
My eyes went, holy cow.
359
00:26:48,300 --> 00:26:50,880
I'm not the only one wondering where his
wine is.
360
00:26:52,200 --> 00:26:56,860
The Yelp reviews of John Fox's Premier
Crew are just as bad.
361
00:26:57,740 --> 00:27:04,020
And I saw these universally horrible
reviews about Premier Crew, saying...
362
00:27:04,590 --> 00:27:06,730
stay away, stay away.
363
00:27:07,130 --> 00:27:13,110
But there was one post that said, these
guys are the best wine store in the
364
00:27:13,110 --> 00:27:17,810
world. They are the best. How can
anybody say anything bad? Blah, blah,
365
00:27:17,910 --> 00:27:20,930
blah, blah. And it was signed John F.
366
00:27:21,710 --> 00:27:28,470
And I said, hmm, I wonder, would the
owner of the store post that?
367
00:27:28,550 --> 00:27:29,550
Just possibly.
368
00:27:31,660 --> 00:27:36,020
Paul Higgins takes the complaints out of
web forums to the big leagues.
369
00:27:37,260 --> 00:27:43,320
The Hagler, a consumer advocacy column
in the Sunday New York Times, takes up
370
00:27:43,320 --> 00:27:46,040
Higgins' case and investigates Premier
Cruz.
371
00:27:46,500 --> 00:27:49,180
It's just enough to break open the dam.
372
00:27:50,420 --> 00:27:57,080
Before long, John Fox is drowning in a
flood of lawsuits and irate customers.
373
00:27:57,900 --> 00:28:00,380
Every single phone call was...
374
00:28:00,920 --> 00:28:02,980
Where's my wine? Where's my refund
check?
375
00:28:03,720 --> 00:28:04,720
You lied to me.
376
00:28:05,320 --> 00:28:07,900
It was supposed to be here by now. This
check bounced.
377
00:28:08,900 --> 00:28:11,520
Put John on the phone. Put John on the
phone. Put John on the phone.
378
00:28:12,650 --> 00:28:17,670
And I called up John Fox and asked him
why all these collectors were
379
00:28:17,670 --> 00:28:19,370
about not getting their wine.
380
00:28:19,610 --> 00:28:25,690
And Fox said that they were sort of
unsophisticated Asian collectors who did
381
00:28:25,690 --> 00:28:31,710
understand the time gap between buying
wine pre -arrival and its actual arrival
382
00:28:31,710 --> 00:28:32,710
in the United States.
383
00:28:33,440 --> 00:28:38,500
It was certainly not a flattering way to
talk about customers who had spent, one
384
00:28:38,500 --> 00:28:44,740
man had spent $900 ,000 with John Fox
and Premier Crew and had filed a lawsuit
385
00:28:44,740 --> 00:28:48,920
when he didn't get any wine or any
refund. And John just dismissed them
386
00:28:48,920 --> 00:28:50,860
as this wannabe collector.
387
00:28:52,680 --> 00:28:56,600
I really started getting worried,
actually, when I was reading about all
388
00:28:56,600 --> 00:28:57,740
lawsuits coming in.
389
00:28:58,660 --> 00:29:00,000
That's how I knew, okay,
390
00:29:01,040 --> 00:29:02,260
I'm not going to get my stuff.
391
00:29:04,040 --> 00:29:05,460
Emotions are running hot.
392
00:29:06,120 --> 00:29:11,560
Smith recalls talking to a secretary for
a Chinese multimillionaire who was owed
393
00:29:11,560 --> 00:29:14,200
$200 ,000 worth of wine.
394
00:29:14,880 --> 00:29:19,780
She went from calling very stoic, very
professional, to in tears.
395
00:29:20,660 --> 00:29:26,760
We were only semi -joking that we were
afraid for her. It sounded like she was
396
00:29:26,760 --> 00:29:30,800
going to be in trouble if the wines
didn't arrive for her boss.
397
00:29:32,110 --> 00:29:36,790
And then he showed up with a brand new
Corvette or something.
398
00:29:37,690 --> 00:29:43,790
And I just thought, wow, the monthly
payment on that could cover
399
00:29:43,790 --> 00:29:47,710
a case or two of what we owed her boss.
400
00:29:49,690 --> 00:29:54,330
Other customers sometimes show up in
person demanding their wine.
401
00:29:55,400 --> 00:29:59,200
If somebody ended up coming in and
literally just taking everything off the
402
00:29:59,200 --> 00:30:02,420
shelves and walking out with it and just
said, call the cops, try to stop me.
403
00:30:03,500 --> 00:30:05,520
We didn't, we weren't going to.
404
00:30:06,120 --> 00:30:08,600
Yeah, do it. Go for it.
405
00:30:08,960 --> 00:30:09,960
Help yourself.
406
00:30:13,300 --> 00:30:16,060
Can things get any worse for John Fox?
407
00:30:17,980 --> 00:30:19,780
Yes, they can.
408
00:30:21,520 --> 00:30:23,460
John Fox is online dating.
409
00:30:24,080 --> 00:30:26,160
eventually came back to haunt him.
410
00:30:27,640 --> 00:30:31,160
Up next, sextortion in Seattle.
411
00:30:32,340 --> 00:30:38,340
20 times a day, just constantly
emailing, texting, calling, pay me, pay
412
00:30:38,340 --> 00:30:39,340
me.
413
00:30:47,100 --> 00:30:52,700
John Fox uses dating apps to summon
women as casually as most people call an
414
00:30:52,700 --> 00:30:53,700
Uber.
415
00:30:54,890 --> 00:30:58,630
and he pays the women with money he has
stolen from clients.
416
00:30:59,730 --> 00:31:04,990
But in this modern -day version of free
love, the bill has come due.
417
00:31:07,990 --> 00:31:13,230
There was a woman that he had met
online, out of state, and they had a
418
00:31:13,230 --> 00:31:19,230
relationship, shall I say, a physical
relationship, and he ended it shortly
419
00:31:19,230 --> 00:31:22,270
after it began, and this woman...
420
00:31:22,860 --> 00:31:27,140
Realized an opportunity to make some
money off this and she threatened to
421
00:31:27,140 --> 00:31:30,680
the relationship to his wife and his
daughter and all their friends and
422
00:31:30,680 --> 00:31:35,840
Her name is soul key job
423
00:31:35,840 --> 00:31:42,760
According to a criminal complaint from
Seattle where she lives yum is a
424
00:31:42,760 --> 00:31:44,440
serial extortionist
425
00:31:46,570 --> 00:31:52,370
The King County prosecutor alleges Yum
meets wealthy men through services like
426
00:31:52,370 --> 00:31:56,050
OkCupid and SeekingArrangements .com.
427
00:32:03,810 --> 00:32:08,550
Once the men meet her and have sex, the
nightmare begins.
428
00:32:10,410 --> 00:32:16,200
She would confront other people that she
did this with and tell them that They
429
00:32:16,200 --> 00:32:18,320
got her pregnant. She needed an
abortion.
430
00:32:24,580 --> 00:32:30,420
Unless they paid for the abortion and
continued giving her money, she would
431
00:32:30,420 --> 00:32:32,280
their lives. So she was very aggressive.
432
00:32:43,630 --> 00:32:50,330
One man in Seattle, according to the
prosecutor, pays Yum $24 ,000 in
433
00:32:50,330 --> 00:32:51,330
hush money.
434
00:32:53,710 --> 00:32:56,910
But that's nothing compared to John Fox.
435
00:32:57,590 --> 00:33:03,950
Yum knows that Fox's wife is unaware of
what her husband is up to, and she
436
00:33:03,950 --> 00:33:07,530
exploits that for big money over a two
-year period.
437
00:33:08,290 --> 00:33:10,350
It begins in 2014.
438
00:33:11,560 --> 00:33:13,920
Yum sends dozens of messages.
439
00:33:19,500 --> 00:33:24,140
And Fox sends thousands of dollars to
buy her silence.
440
00:33:25,380 --> 00:33:28,860
But by June 2014, he's had enough.
441
00:33:29,780 --> 00:33:34,900
You can't expect me to keep sending you
money. We are supposed to be done now.
442
00:33:35,000 --> 00:33:37,520
At least three times we've been through
this.
443
00:33:37,840 --> 00:33:40,640
I've already sent you tens of thousands
of dollars.
444
00:33:41,260 --> 00:33:42,380
I can't do it anymore.
445
00:33:43,460 --> 00:33:44,460
Sorry.
446
00:33:46,680 --> 00:33:49,660
But Yum isn't about to let him off the
hook.
447
00:33:51,080 --> 00:33:54,800
She was very good at Facebook research
and online presence.
448
00:33:55,560 --> 00:34:00,260
She dug and found a lot about his family
and used that all to manipulate more
449
00:34:00,260 --> 00:34:01,420
and more money out of him.
450
00:34:03,060 --> 00:34:06,640
Yum figures out how much Fox paid for
his house.
451
00:34:07,850 --> 00:34:14,469
And when Fox's wife posts on Facebook, I
love my everyday driver, Audi
452
00:34:14,469 --> 00:34:16,030
USA R8.
453
00:34:17,710 --> 00:34:24,270
Yum sends a screenshot of the post and
writes, If you supposedly don't have
454
00:34:24,270 --> 00:34:27,310
money, why does your wife have an R8?
455
00:34:28,850 --> 00:34:35,110
Fox continues to send payments through
2015, while Premier Crew is
456
00:34:35,110 --> 00:34:36,110
imploding.
457
00:34:37,420 --> 00:34:43,760
It's sad in many respects because, you
know, he got himself into this position.
458
00:34:43,940 --> 00:34:47,020
He didn't know that this woman was going
to do this to him.
459
00:34:47,860 --> 00:34:51,080
But if you're going to play, you're
usually going to have to pay.
460
00:34:51,500 --> 00:34:53,500
And he learned it the hard way.
461
00:34:55,679 --> 00:34:56,880
By 2016,
462
00:34:57,800 --> 00:34:59,540
Yum is merciless.
463
00:35:00,980 --> 00:35:03,820
She writes, OK, Sackett.
464
00:35:04,680 --> 00:35:06,880
You are really testing my patience.
465
00:35:07,920 --> 00:35:14,640
If I don't have my 15K and the 4K next
week, I will send you to jail, you
466
00:35:14,640 --> 00:35:16,000
stupid piece of s***.
467
00:35:17,920 --> 00:35:24,140
In some instances, 20 times a day. Just
constantly, you know, emailing, texting,
468
00:35:24,300 --> 00:35:26,500
calling, pay me, pay me, pay me.
469
00:35:27,020 --> 00:35:29,380
It was overwhelming, I think, for him at
times.
470
00:35:32,880 --> 00:35:36,880
And it's not just Fox's wife who is a
pawn in this game.
471
00:35:37,220 --> 00:35:40,960
Yum threatens to expose the affair to
his daughter.
472
00:35:41,980 --> 00:35:47,780
She was at the time going to college at
the University of Arizona and
473
00:35:47,780 --> 00:35:54,700
learned about her father's escapades
with this woman because the
474
00:35:54,700 --> 00:35:55,760
woman contacted her.
475
00:35:57,160 --> 00:36:01,160
Yum even emails the president of the
girl's sorority.
476
00:36:02,120 --> 00:36:03,500
It was a nightmare.
477
00:36:04,160 --> 00:36:05,600
And she was crazy.
478
00:36:07,040 --> 00:36:13,000
Toward the end of this two years of
torture, Yum claims she has a recording
479
00:36:13,000 --> 00:36:16,660
John Fox admitting to running a massive
wine fraud.
480
00:36:16,980 --> 00:36:22,800
She writes, What the is wrong with you?
481
00:36:23,420 --> 00:36:29,040
Make it happen. I'm selling it to a guy
in New York I've been talking to whom
482
00:36:29,040 --> 00:36:33,580
you owe a sh... Ton of wine to who wants
you in jail.
483
00:36:34,140 --> 00:36:37,580
Answer me ASAP or I proceed with them.
484
00:36:39,020 --> 00:36:42,560
Little Pacino at that point, his life
was already crashing around, so she
485
00:36:42,560 --> 00:36:43,760
really have any leverage on him anymore.
486
00:36:45,840 --> 00:36:51,480
Up next, the sly fox turns the tables on
his blackmailer.
487
00:37:05,800 --> 00:37:12,780
On January 6th, 2016, employee Melissa
Smith gets an email from John
488
00:37:12,780 --> 00:37:14,320
Fox, a premier crew.
489
00:37:14,620 --> 00:37:17,880
It's a termination letter, and it's
painfully blunt.
490
00:37:18,460 --> 00:37:20,560
I can't afford to pay you anymore.
491
00:37:21,020 --> 00:37:23,120
No revenue, no funds.
492
00:37:23,860 --> 00:37:24,860
Sorry.
493
00:37:26,160 --> 00:37:32,300
He said, yikes, can you at least pay me
for this week? And he said, no, I have
494
00:37:32,300 --> 00:37:34,400
no money the last few days.
495
00:37:35,240 --> 00:37:36,240
Sure.
496
00:37:36,620 --> 00:37:39,560
Fox and Premier Crew filed for
bankruptcy.
497
00:37:40,660 --> 00:37:42,900
The numbers are staggering.
498
00:37:43,720 --> 00:37:50,040
They claimed $7 million in assets,
basically wine, and $70 million
499
00:37:50,040 --> 00:37:56,940
in money owed to about 9 ,000 clients
around the
500
00:37:56,940 --> 00:37:58,900
world. 9 ,000!
501
00:37:59,480 --> 00:38:04,000
And every one of those customers was
stuck.
502
00:38:07,240 --> 00:38:11,400
They include people who lost hundreds of
thousands of dollars to Premier Crewe,
503
00:38:11,560 --> 00:38:14,680
but also small -time enthusiasts.
504
00:38:16,280 --> 00:38:21,020
The man that had ordered a bottle of
special champagne for his daughter's
505
00:38:21,020 --> 00:38:25,660
wedding, and he was put off and put off,
and he got the runaround from Premier
506
00:38:25,660 --> 00:38:29,440
Crewe. He never got his wine, and the
wedding went off without that wine. I
507
00:38:29,440 --> 00:38:31,920
thought, that hit home for him.
508
00:38:33,200 --> 00:38:39,980
While the FBI raids Premier Crewe,
Seizing his records, Fox meets
509
00:38:39,980 --> 00:38:43,340
with his defense attorney and waves the
white flag.
510
00:38:44,180 --> 00:38:51,140
From the get -go, he said, listen, I'm
the Bernie Madoff in the wine
511
00:38:51,140 --> 00:38:54,920
business. I know what's going to happen
to me.
512
00:38:55,220 --> 00:38:58,360
I want to come in and I want to
cooperate. I don't want to fight this.
513
00:38:59,980 --> 00:39:04,480
And he came in and pretty much right off
the bat admitted to...
514
00:39:05,000 --> 00:39:10,600
Everything that he had done, I think he
was a broken man at that point.
515
00:39:11,760 --> 00:39:15,840
He'd been basically living a lie with
everybody in his life. His family, his
516
00:39:15,840 --> 00:39:19,400
wife doesn't know about the women he met
online. His employees don't know about
517
00:39:19,400 --> 00:39:20,440
the fraud he's running.
518
00:39:20,980 --> 00:39:25,740
Everybody he interacts with every single
day, he's living a lie with. And I
519
00:39:25,740 --> 00:39:28,600
think the weight of that becomes
crushing over time.
520
00:39:29,740 --> 00:39:33,320
I really do think that it was an
unburdening of him to tell the story of
521
00:39:33,320 --> 00:39:34,320
he'd been doing for...
522
00:39:34,330 --> 00:39:38,870
More than 20 years lying to people for
that long and stealing so much money
523
00:39:38,870 --> 00:39:40,070
so many innocent victims.
524
00:39:40,550 --> 00:39:43,690
He also mentioned to us, hey, I'm being
extorted. I'm basically being
525
00:39:43,690 --> 00:39:45,250
blackmailed even as we speak.
526
00:39:47,290 --> 00:39:50,810
And, you know, of course, it's kind of
hard to hear coming from this guy who
527
00:39:50,810 --> 00:39:53,570
just built millions of dollars. You
don't have a lot of sympathy.
528
00:39:54,750 --> 00:40:01,110
But the law doesn't require sympathetic
victims, just clear evidence of a crime.
529
00:40:01,990 --> 00:40:03,150
And John Fox.
530
00:40:03,690 --> 00:40:09,710
who has paid Sol Ki -yum more than $200
,000, agrees to record his conversations
531
00:40:09,710 --> 00:40:10,710
with her.
532
00:40:11,230 --> 00:40:15,570
She said over and over again, just, you
know, these expletive -laced tirades
533
00:40:15,570 --> 00:40:19,410
about how she's going to ruin his life
and he's such a terrible person and you
534
00:40:19,410 --> 00:40:21,670
better pay me or it's all crashing down
around you.
535
00:40:23,130 --> 00:40:26,350
Yum pleads guilty to five counts of
extortion.
536
00:40:27,050 --> 00:40:32,850
She is ordered to pay $277 ,000 to be
distributed to Fox's victims.
537
00:40:34,550 --> 00:40:38,350
John Fox pleads guilty to one count of
wire fraud.
538
00:40:38,770 --> 00:40:45,390
And on December 14, 2016, John Fox is
sentenced to six and a half years in
539
00:40:45,390 --> 00:40:46,390
federal prison.
540
00:40:48,590 --> 00:40:53,870
Francis Dinkelspiel, who was there in
federal court, notes that Fox seems
541
00:40:53,870 --> 00:40:55,070
utterly alone.
542
00:40:55,700 --> 00:40:59,480
When he was in federal court, there was
no one in the courtroom there for John
543
00:40:59,480 --> 00:41:03,660
Fox. His wife didn't show up. She
actually moved back to the Philippines,
544
00:41:03,660 --> 00:41:05,220
his daughter was nowhere to be seen.
545
00:41:06,380 --> 00:41:12,760
He lost his wife, and he seems to have
lost his daughter as well. So I think
546
00:41:12,760 --> 00:41:15,720
he's paying a very high price for his
crime.
547
00:41:18,540 --> 00:41:22,800
George Ziccarelli loses $300 ,000 worth
of wine.
548
00:41:24,230 --> 00:41:27,530
Paul Higgins is stiffed out of $20 ,000.
549
00:41:29,130 --> 00:41:34,730
Ultimately, thanks in part to the
Hagler, his American Express card covers
550
00:41:34,730 --> 00:41:35,730
loss.
551
00:41:36,310 --> 00:41:40,930
But when it comes to John Fox, perhaps
the saying is true.
552
00:41:41,450 --> 00:41:43,950
Character is destiny.
553
00:41:45,650 --> 00:41:48,510
Double parking in a handicapped spot.
554
00:41:48,810 --> 00:41:51,090
I tend not to like people like that.
555
00:41:51,920 --> 00:41:56,480
And I also tend not to like people that
take millions of dollars of other
556
00:41:56,480 --> 00:42:02,360
people's money and live the high life
and then they're sorry later when they
557
00:42:02,360 --> 00:42:03,360
caught.
558
00:42:03,520 --> 00:42:10,340
Nobody likes to see an older guy lose it
all and end up in
559
00:42:10,340 --> 00:42:12,440
jail. But what he did was wrong.
560
00:42:12,840 --> 00:42:14,460
9 -1 -1, what is your emergency?
561
00:42:14,860 --> 00:42:16,140
Sounded like playing correct.
562
00:42:16,480 --> 00:42:17,500
The neighborhood explodes.
563
00:42:18,020 --> 00:42:19,040
Two people die.
564
00:42:19,520 --> 00:42:22,000
An insurance fraud goes very wrong.
565
00:42:22,480 --> 00:42:27,180
Roll the American Creed next Monday, 10
Eastern, CNBC. Get yours.
566
00:42:27,780 --> 00:42:32,300
The Profit of Marijuana Millions
premieres tomorrow at 10, CNBC.
49500
Can't find what you're looking for?
Get subtitles in any language from opensubtitles.com, and translate them here.