(WineSpectator) - John Fox, the man behind troubled wine retailer Premier Cru, will plead guilty this week to criminal charges that will likely send him to federal prison, Wine Spectator has learned. During a sealed proceeding in June, federal prosecutors charged Fox with one count of wire fraud. According to an agreement with the U.S. Justice Department, Fox will surrender to federal marshals tomorrow; Thursday he will appear before a federal magistrate and is expected to change a previous plea from not guilty to guilty.

The FBI began investigating Fox earlier this year, after Premier Cru filed for bankruptcy, frustrating thousands of angry customers who paid the store for wines that were never delivered. Several former customers had filed lawsuits against the Berkeley, Calif., store, which was known for offering great deals on wines that the store labeled “future arrivals.” In its bankruptcy petition, the firm declared $70 million in debt, mostly unfulfilled orders paid for by almost 9,000 customers in 45 states and 18 countries. It had less than $7 million in assets, mainly wine in its warehouse space.

The Oakland-based U.S. Attorney charges that Fox conducted a fraudulent scheme, offering wines he didn’t have and using customers’ money to secure wines he owed other clients. The prosecution alleges this plan was carried out “from about 2009 to about 2015.”

But the charges stem from a single undated wire transfer of $102,271 from “H.W.M.L.” in Hong Kong to an unnamed Northern California bank. (Before the bankruptcy, a Hong Kong collector with those initials, Lawrence Wai-Man Hui, filed a lawsuit against Premier Cru, charging that he paid more than $981,000 for 1,591 bottles of wine, of which fewer than 100 were delivered.)

“The prosecution has selected one clear-cut example of wire fraud,” a former federal prosecutor who has followed the case told Wine Spectator. “But all of Fox’s relevant conduct in relation to the scheme will be counted against him. There is no such thing as a federal statute criminalizing Ponzi schemes. Bernie Madoff wasn’t convicted of masterminding a Ponzi scheme. The charge was mail and wire fraud.”

The charge was filed June 28, but because Fox was concerned for his safety, the U.S.

Attorney agreed to seal the proceedings until the arraignment.

In lieu of a grand jury indictment, Fox is being "prosecuted by information,” having agreed not to contest the charges. “There were undoubtedly conversations back and forth before June 28 that we will never know about,” said the former prosecutor. “Basically, ['prosecution by information' means that ] you are caught. You are laying down all your arms and you saying, ‘I did it and I am sorry for it. I understand I have to go to prison.

But please have some mercy on me.’”

The sentencing process, including a report from the probation department, will begin once Fox pleads guilty. He faces up to 20 years in prison and a fine of up to $250,000.