The Department of Justice has formed a federal grand jury as part of a criminal investigation into the revered New York City wine shop Sherry-Lehmann Wine & Spirits, according to former employees.
The 89-year-old Manhattan-based liquor merchant has long been regarded as one of America’s most exclusive retailers of fine wines. However, as the New York Times reported last month, the business could not deliver significant quantities of expensive wine which several clients had paid in advance.
The newspaper also cited former workers who thought Sherry-Lehmann was inappropriately selling rare bottles belonging to clients to other customers from a storage facility.
At the time, Shyda Gilmer and Kris Green, the owners of Sherry-Lehmann, stated that Covid-19 and taxes on French wines had caused a delay in the supply of some wines and that the shop would provide any missing bottles by the end of the current year.
However, three clients of Sherry-Lehmann brought legal actions against it, saying that they never received more wine than $1 million worth that they had paid for. The State Liquor Authority launched an inquiry following the publication of the The Times articles. Last March, the New York drinks retailer was also hit with a $100,000 fine after an undercover operation by a TV programme discovered they were selling fake bourbon.
Sherry-Lehmann attempted to have both lawsuits dismissed and has denied any wrongdoing.
The Manhattan U.S. Attorney’s Office, the Postal Service, and the New York Police Department are among the organizations conducting the criminal inquiry.
