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Premier Cru scandal: Sparks fly as wine customers confront embattled owner in meeting
Feb 25, 2016
(ContraCostaTimes) - In an often tense meeting Wednesday, the embattled owner of Berkeley fine wine purveyor Premier Cru was forced to face his creditors and field questions about how millions of dollars worth of wine disappeared.
However, John Fox refused to answer any questions, pleading his Fifth Amendment right not to incriminate himself, at the advice of his criminal attorney. Fox, who now rents a modest home in Concord, also refused to answer any questions from reporters outside the meeting in the Office of the U.S. Trustee in Oakland.
Disgruntled wine customers have accused Premier Cru and Fox of running a wine Ponzi scheme, with many customers claiming they bought wine futures from the company but never received their wine.
Last month, Premier Cru filed for bankruptcy, claiming $70 million in debt and almost $7 million in inventory, largely consisting of more than 71,000 bottles of wine stored in the company's University Avenue warehouse. Earlier this month, Fox declared personal bankruptcy, claiming similar debt, but only zero to $50,000 in assets.
The FBI has launched an investigation into the scandal, and the bankruptcy trustee Wednesday said the state Attorney General's Office also has made inquiries.
Fox, who had not spoken publicly since his business went under, sat awkwardly throughout the 90-minute hearing. Wearing jeans, a hooded jacket, and a collared shirt with a cross dangling from his neck, the tall, balding man was sworn in under oath and then repeatedly read his constitutional right to remain silent from an index card.
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