FBI investigates counterfeit wine auctions - report

NEW YORK - Federal prosecutors have launched a criminal investigation into counterfeit-wine sales and subpoenaed leading rare wine collectors and top auction houses including Christie's in London and Zachys in New York, according to a Wall Street Journal report.

The paper said a grand jury in New York has begun hearing evidence in the case and the art-fraud unit of the Federal Bureau of Investigation has conducted interviews.

The criminal investigation was reported to be focusing on whether auction house and collectors knowingly sold counterfeit wines -- cheaper wine in bottles with faked labels of the more expensive vintages -- despite doubts about their authenticity.

Counterfeit bottles of wine are multiplying as the global demand for collectible wines rises, according to a recent article in Wine Spectator magazine.

Expensive wine has joined the ranks of designer handbags and top-end consumer software as goods that are worth producing fakes for as prices push up to the US$1000 ($1499) mark.

The FBI, Christie's and Zachys did not return calls seeking comment.

- REUTERS