He’s Not the One Who Might Serve Time for His Wine
For Steve Wallace, helping the FBI break up an alleged wine futures scam has turned into a lesson that no good deed goes unpunished.
Wallace, whose Wally’s wine store in Westwood pulls in about $18 million in annual sales, is one of Southern California’s biggest wine dealers. Two weeks ago, Ronald Wallace -- no relation -- was arrested on charges that he sold futures in Bordeaux wine that he didn’t own. Victims of the alleged $13-million scam included Hollywood producer Arthur Sarkissian and Seattle Mariner pitcher Jamie Moyer.
FBI investigators said Steve Wallace helped teach them about the arcane world of expensive French wine futures.
Now he says some people, including customers, think he’s the Wallace who was accused of bilking consumers -- or at least is related to him. It’s even started to hurt his business, he says.
“At first I thought it wasn’t a big deal,” he said. “But then people at the gym started asking if I was going to jail, and customers called the store asking if this guy is my brother.”
In the wine futures business, consumers pay for Bordeaux wines while they are aging in barrels in France and can wait two years to take delivery. Wally’s sells $2 million to $3 million in futures annually. Steve Wallace says the store’s wine future sales have fallen 10% since the Sept. 30 arrest of Ronald Wallace.
Even federal investigators wondered about the similarity in names. They checked Steve Wallace out before deciding that he was a reputable dealer who could help them with technical aspects of the case, said Asst. U.S. Atty. Pam Johnston.
The two Wallaces even crossed paths at one point. Investigators said Ronald Wallace bought fancy wines to serve at his sales pitches from -- where else? -- Wally’s.
