One of the largest wine smuggling rings in China’s recent history has been busted. Several wine retailers in Shanghai were allegedly involved in the investigation, which involved $51.4 million in smuggled wines and $17.5 million in evaded taxes, according to Vino Joy.
Chinese media outlet WBO first reported on the investigation based on news tips from a wine merchant who had worked with a representative for an unnamed Bordeaux company. The representative, identified by their last name Wu, had been selling grand cru classé wines in China for over 10 years and was allegedly involved in the smuggling ring.
The representative was asked to assist in the police investigation, which involves wine at numerous wine retailers across the country.
Wu’s buyers included several large Chinese wine companies, a translated report states.
The wines were reportedly brought into China and stored in Hong Kong warehouses. Wu then allegedly used falsified invoices to sell the smuggled wines to Chinese retailers.
The ring was first discovered by investigators when wines bearing the name of the undisclosed Bordeaux importer were discovered at retailers across the country. The importer reportedly denied importing the bottles.
Wu does not appear to be under arrest currently, WBO reports, and their exact involvement in the operation is not disclosed. Ultimately, 39 people were arrested in connection with the investigation.
