(Decanter) - Convicted wine fraudster Rudy Kurniawan has agreed to pay $3m and 'tell everything he knows' to settle a lawsuit with billionaire collector Bill Koch, after his sentencing was again delayed.

The deal could shed more light on how Kurniawan - also known as Dr Conti - managed to sell millions of dollars of fake fine wine concocted in his home kitchen. He was convicted in New York last December.

News of the deal emerged after Kurniawan saw his sentencing delayed for the second time, until 4 August. He was also ordered by the court to forfeit $20m to victims of his scam.

Tell-all deal with Koch

In court, one of Kurniawan's lawyers, Jerry Mooney, said a settlement had been agreed in California between his client and Koch, who has spent more than $25m on a personal crusade against fake fine wines.

Both Koch's spokesperson, Brad Goldstein, and Mooney subsequently told Decanter.com that Kurniawan will pay Koch $3m in damages.

Goldstein said that Kurniawan, who remains in custody, has confessed to selling fake wines.

At Koch's request, 'Rudy has agreed to full cooperation, a debriefing, and has agreed to tell everything he knows about counterfeiting in the wine industry', he added.

It remains to be seen how much extra information Kurniawan can divulge.