1 00:00:00,430 --> 00:00:07,290 In this episode of American Greed, John Fox makes millions selling fine wine 2 00:00:07,290 --> 00:00:10,070 and lives like a classic rock star. 3 00:00:10,810 --> 00:00:14,970 Every day John would come to work in a different car, a different fancy car. 4 00:00:15,530 --> 00:00:17,830 Ferraris, Maseratis, multiple Mercedes. 5 00:00:19,070 --> 00:00:24,850 Fox's customers are enticed with low prices and they ignore the financial 6 00:00:24,850 --> 00:00:25,970 hangover to come. 7 00:00:26,470 --> 00:00:29,030 Stay away, stay away. 8 00:00:30,670 --> 00:00:32,409 Fox, too, is reckless. 9 00:00:32,890 --> 00:00:39,290 He steals clients' money and spends nearly $1 million on scores of women he 10 00:00:39,290 --> 00:00:40,290 meets online. 11 00:00:40,610 --> 00:00:42,730 I think he was definitely a sex addict. 12 00:00:44,110 --> 00:00:50,770 As Fox's $55 million wine fraud comes crashing down, one of Fox's sugar babies 13 00:00:50,770 --> 00:00:52,990 turns a nasty trick. 14 00:00:53,650 --> 00:00:57,190 Emailing, texting, calling, pay me, pay me, pay me. 15 00:00:58,019 --> 00:01:00,640 If you're going to play, you're usually going to have to pay. 16 00:01:19,240 --> 00:01:24,940 In Berkeley, California, there's a trendy coffee shop called the Artiste 17 00:01:26,250 --> 00:01:32,870 And in 2015, it's a hot spot for a 65 -year -old Casanova named John Fox. 18 00:01:34,090 --> 00:01:39,790 The baristas are agog at these scantily clad 20 -somethings who come in to date 19 00:01:39,790 --> 00:01:42,050 a man nearly three times their age. 20 00:01:43,590 --> 00:01:48,590 I got a call from the employees of Artist Coffee, and they had been 21 00:01:48,590 --> 00:01:53,090 John Fox come into their store for years, usually twice a week, meeting 22 00:01:53,090 --> 00:01:54,730 different women every time. 23 00:01:55,790 --> 00:01:58,250 It's a parlor game for the baristas. 24 00:01:58,850 --> 00:02:02,590 Which high -end sports car will John Fox pull up in today? 25 00:02:03,210 --> 00:02:04,210 His Ferrari? 26 00:02:05,050 --> 00:02:07,250 His electric blue Corvette? 27 00:02:08,090 --> 00:02:14,690 And does the stunning young woman at his side know that Fox is married and has a 28 00:02:14,690 --> 00:02:16,370 daughter about her age? 29 00:02:17,230 --> 00:02:21,970 And it got to the point where the employees were actually kind of 30 00:02:21,970 --> 00:02:26,760 this. And they started to surreptitiously take pictures of Fox 31 00:02:26,760 --> 00:02:32,680 girlfriends. And I thought that was very, very telling, just how prolific a 32 00:02:32,680 --> 00:02:33,680 dater John Fox was. 33 00:02:35,860 --> 00:02:38,920 Who is this mysterious Silver Fox? 34 00:02:39,740 --> 00:02:41,740 And where does he get his money? 35 00:02:48,490 --> 00:02:54,350 John Fox was, I believe, originally a waiter in a restaurant and floated into 36 00:02:54,350 --> 00:02:58,550 the retail wine world on a very small scale. 37 00:02:59,650 --> 00:03:02,970 But a rising tide lifts all boats. 38 00:03:03,350 --> 00:03:10,010 And for John Fox, who founds a tiny wine store in 1980, the Berkeley area is a 39 00:03:10,010 --> 00:03:11,470 rising tide indeed. 40 00:03:14,410 --> 00:03:20,310 With famous chefs like Alice Waters and her Chez Panisse, Berkeley is the 41 00:03:20,310 --> 00:03:22,470 vanguard of a food and wine renaissance. 42 00:03:23,230 --> 00:03:29,110 He was at the right place at the right time, and there was a need for his 43 00:03:29,110 --> 00:03:30,110 services. 44 00:03:31,710 --> 00:03:36,510 Still, Fox would be just a local wine merchant whom no one outside of Berkeley 45 00:03:36,510 --> 00:03:40,270 has ever heard of if he didn't make one key decision. 46 00:03:41,130 --> 00:03:43,790 He goes big into something called... 47 00:03:44,190 --> 00:03:45,270 Pre -arrivals. 48 00:03:45,630 --> 00:03:50,530 With pre -arrivals, consumers pay up front for wine that's still sitting in 49 00:03:50,530 --> 00:03:51,530 France. 50 00:03:51,570 --> 00:03:56,150 The buyers might not get delivery for several months or even years. 51 00:03:57,530 --> 00:04:02,990 Pre -arrival is a concept that's unique, I believe, to the wine world. 52 00:04:04,130 --> 00:04:09,350 Most products you buy, you're going to get them upon purchase. You go on the 53 00:04:09,350 --> 00:04:11,650 Internet and buy a pair of shoes, you expect to have that. 54 00:04:12,040 --> 00:04:14,400 End of the week, it's on back order, maybe a few weeks, whatever. 55 00:04:15,320 --> 00:04:19,660 But with wine, I can't think of too many other retail purchases where you're 56 00:04:19,660 --> 00:04:21,800 okay with waiting for years to get this thing. 57 00:04:23,420 --> 00:04:27,220 Why would you do it? Well, if you think that prices are going to go up later, 58 00:04:27,380 --> 00:04:30,720 then it's better to buy it now and you'll get it for less money. 59 00:04:32,180 --> 00:04:35,640 And it's reasonable to think the prices will go up. 60 00:04:36,250 --> 00:04:41,930 Wines purchased on pre -arrival usually come from the rarest, most coveted 61 00:04:41,930 --> 00:04:42,930 vineyards on earth. 62 00:04:43,510 --> 00:04:48,970 Domaine Romani Conti, Chateau Lafitte, Chateau Petru. 63 00:04:50,150 --> 00:04:55,790 We're talking about wines that needed to spend not just years, but decades in 64 00:04:55,790 --> 00:05:00,710 conditions where they could very slowly evolve and all the things that 65 00:05:00,710 --> 00:05:03,730 collectors hope will happen to good French wine that they'll... 66 00:05:04,430 --> 00:05:09,850 Gain complexity and gain nuances. And when you pull the cork on that bottle, 67 00:05:09,850 --> 00:05:13,950 sorts of wonderful aromas will come out. And you'll say, wow, this was worth 68 00:05:13,950 --> 00:05:14,950 waiting for. 69 00:05:16,770 --> 00:05:20,890 And for those who delay gratification, there's a reward. 70 00:05:21,670 --> 00:05:25,950 Fortunes can be made if the wine is well received by influential critics. 71 00:05:27,410 --> 00:05:33,090 Robert Parker, for example, moves markets with his 100 -point rating 72 00:05:33,980 --> 00:05:39,200 Robert Parker gives 100 points or 99 points to a wine, and the next morning, 73 00:05:39,200 --> 00:05:40,220 wine is doubled in price. 74 00:05:42,320 --> 00:05:48,620 I was flipping wine, drinking it, and, you know, it was great. You know, it 75 00:05:48,620 --> 00:05:49,620 off the years. 76 00:05:50,840 --> 00:05:55,640 In the 90s, New Yorker George Ziccarelli works in the film and television 77 00:05:55,640 --> 00:05:56,640 business. 78 00:05:57,080 --> 00:06:01,820 But he has a side hustle, speculating in wine futures. 79 00:06:03,440 --> 00:06:08,840 With the year 2000 approaching, Ziccarelli bets that wine collectors 80 00:06:08,840 --> 00:06:09,840 stock up. 81 00:06:10,000 --> 00:06:11,480 And I said, you know what? 82 00:06:11,840 --> 00:06:15,120 Somebody's going to want this stuff for the party of the millennia and the most 83 00:06:15,120 --> 00:06:16,120 expensive wine. 84 00:06:17,560 --> 00:06:23,040 John Fox's wine shop, Premier Cru, becomes Ziccarelli's main supplier. 85 00:06:24,280 --> 00:06:29,400 Premier Cru is known for its low prices, always well below the competition. 86 00:06:30,650 --> 00:06:35,690 And this is how I got to know John Fox, because I brought two cases of 1990 87 00:06:35,690 --> 00:06:39,610 Roman and Conti from him, and it was delivered right away. 88 00:06:40,270 --> 00:06:46,450 So, I mean, his prices were cheaper than anybody else. So, you know, wow, what a 89 00:06:46,450 --> 00:06:47,450 score I made. 90 00:06:48,330 --> 00:06:53,890 While Ziccarelli builds a cellar of extremely rare wine, his friends laugh 91 00:06:53,890 --> 00:06:56,470 him, thinking he's lost his mind. 92 00:06:57,070 --> 00:07:01,750 And then in 1999, Ziccarelli sells his collection through an auction at 93 00:07:01,750 --> 00:07:05,950 Sotheby's, where it's touted as the Millennium Superlot. 94 00:07:06,730 --> 00:07:11,290 His wine gets top billing on the cover of the auction catalog. 95 00:07:11,990 --> 00:07:17,010 Well, it was a really big thing. I mean, first of all, you know, even... 96 00:07:18,400 --> 00:07:23,640 Very well. I don't know how I was able to get five cases of 1990 Romani Conti. 97 00:07:23,680 --> 00:07:26,440 It's hard now. I mean, it's impossible. 98 00:07:28,180 --> 00:07:33,780 The lot sells for just over a quarter million dollars, which at the time is a 99 00:07:33,780 --> 00:07:34,780 world record. 100 00:07:36,540 --> 00:07:39,040 It's been broken many times over since then. 101 00:07:40,500 --> 00:07:41,860 You know, the funny thing is. 102 00:07:42,270 --> 00:07:47,110 Until everybody saw this catalog, everybody thought I was stupid and 103 00:07:47,490 --> 00:07:50,270 Everybody at work was putting me down. 104 00:07:51,410 --> 00:07:53,930 I had the last laugh, which was great. 105 00:07:54,970 --> 00:07:56,370 I buy it to drink it. 106 00:07:58,130 --> 00:08:01,330 Paul Higgins is a wine collector in St. Louis. 107 00:08:02,570 --> 00:08:08,230 There are other things that I can try to invest in if I want to do that, but I 108 00:08:08,230 --> 00:08:11,030 don't buy it to trade it. I don't buy it to... 109 00:08:12,570 --> 00:08:17,190 show it to friends at parties. I buy it to drink it and to share it with people 110 00:08:17,190 --> 00:08:18,190 at parties. 111 00:08:19,290 --> 00:08:24,970 Higgins first orders pre -arrival wine from Premier Cru in 2000 when a co 112 00:08:24,970 --> 00:08:29,650 -worker tells him that the 2000 vintage in Bordeaux is shaping up to be 113 00:08:29,650 --> 00:08:31,330 historically great. 114 00:08:31,790 --> 00:08:33,789 And I said, okay, I'll try that. 115 00:08:34,010 --> 00:08:37,190 And eventually I did get the wine and I did save some money. 116 00:08:37,510 --> 00:08:43,809 And that was how I learned about that whole pay now, get it later world of 117 00:08:44,850 --> 00:08:49,830 His only complaint about Premier Crewe is the time it takes to get his wine. 118 00:08:50,930 --> 00:08:53,130 Everything seemed to be ship shape. 119 00:08:53,890 --> 00:08:56,730 The wine took a while, usually longer than you wanted. 120 00:08:57,070 --> 00:09:00,990 But if you're buying a Bordeaux, some people think you shouldn't even touch 121 00:09:00,990 --> 00:09:02,710 bottle until it's at least 10 years old. 122 00:09:03,130 --> 00:09:06,670 So if you have to wait two or three years for a bottle, what does that 123 00:09:06,750 --> 00:09:07,750 really? 124 00:09:08,680 --> 00:09:12,860 Higgins, like George Ziccarelli, is happy with Premier Crewe. 125 00:09:13,380 --> 00:09:18,680 And by the early 2000s, John Fox has made his mark around the globe. 126 00:09:20,120 --> 00:09:26,620 He counts as customers at Abayo Ogunlesi, a private equity investor and 127 00:09:26,620 --> 00:09:32,600 member of Goldman Sachs, and Arthur Patterson, an early investor in 128 00:09:33,740 --> 00:09:36,840 Arthur Patterson is a very private man. 129 00:09:37,640 --> 00:09:43,580 But he reportedly has one of the most beautiful wine cellars, which he has in 130 00:09:43,580 --> 00:09:44,720 Big Sur in California. 131 00:09:45,300 --> 00:09:47,720 You can't ask for a more sophisticated investor. 132 00:09:49,580 --> 00:09:55,300 I doubt there's any wine shop in America, or anywhere in the world maybe, 133 00:09:55,300 --> 00:10:02,020 had such an enormous customer base globally as Premier Crew in 134 00:10:02,020 --> 00:10:03,020 Berkeley, California. 135 00:10:04,240 --> 00:10:09,800 And what is it that makes the global elite beat a path to John Fox's door? 136 00:10:11,240 --> 00:10:12,240 Bargains. 137 00:10:12,560 --> 00:10:15,160 Deals that belt out a siren song. 138 00:10:16,000 --> 00:10:19,620 If you want these wines and you see that price, and you know they've been in 139 00:10:19,620 --> 00:10:24,980 business for a decade, you just grab it. That's called an avarice. 140 00:10:25,960 --> 00:10:28,380 You'll buy it now, ask questions later. 141 00:10:30,720 --> 00:10:33,460 Paul Higgins has a different point of view. 142 00:10:34,030 --> 00:10:39,410 He believes that while Fox's prices are low, they are not suspiciously low. 143 00:10:40,110 --> 00:10:45,950 He figures Fox simply has a more direct source to find wine than his competitors 144 00:10:45,950 --> 00:10:46,950 do. 145 00:10:47,390 --> 00:10:53,410 The wine world has so many touch points of distribution from the vineyard to 146 00:10:53,410 --> 00:10:54,410 your dinner table. 147 00:10:54,610 --> 00:10:58,330 And the more people that touch that wine, the more expensive it is. So 148 00:10:58,330 --> 00:11:03,090 relatively speaking, my experience was that Premier Cru's prices were good. 149 00:11:03,770 --> 00:11:05,750 But they weren't ridiculously good. 150 00:11:08,590 --> 00:11:14,750 Up next, Fox's low prices are actually very costly. 151 00:11:15,770 --> 00:11:18,170 Looked too good to be true, was too good to be true. 152 00:11:19,130 --> 00:11:24,910 And later, wine connoisseur John Fox follows his other passion. 153 00:11:25,450 --> 00:11:27,490 I think he was definitely a sex addict. 154 00:11:28,090 --> 00:11:32,230 I mean, you know, that's a lot of money to spend on online dating. 155 00:11:46,190 --> 00:11:51,770 For John Fox and his premier crew wine store in Berkeley, California, the early 156 00:11:51,770 --> 00:11:53,970 2000s are boom times. 157 00:11:55,710 --> 00:12:02,450 The market explodes as the newly rich in Asia dive headfirst, sometimes 158 00:12:02,450 --> 00:12:04,950 literally, into fine wine. 159 00:12:05,410 --> 00:12:10,630 Part of what happened was that the whole world's thirst for wine sort of changed 160 00:12:10,630 --> 00:12:13,950 dramatically after Hong Kong dropped a tariff. 161 00:12:15,150 --> 00:12:18,070 after auctions sort of shot up all around the world. 162 00:12:18,930 --> 00:12:24,350 And wine all of a sudden was seen as an investment vehicle for a lot of people. 163 00:12:25,970 --> 00:12:31,230 Because they live all over the world, Fox's clients who buy wine on pre 164 00:12:31,230 --> 00:12:33,970 sometimes never see their purchase. 165 00:12:34,370 --> 00:12:39,990 Many are content, believing their wine is sitting in Berkeley, chilling at 55 166 00:12:39,990 --> 00:12:41,150 degrees Fahrenheit. 167 00:12:42,120 --> 00:12:47,280 The reason they were docile is something very clever that John Fox did. He had 168 00:12:47,280 --> 00:12:48,239 this warehouse. 169 00:12:48,240 --> 00:12:51,600 He said, I'm going to sell you that wine at the lowest price. 170 00:12:52,300 --> 00:12:56,020 Not sure when it's going to come in, but when it does, it's not going to be 171 00:12:56,020 --> 00:12:57,900 ready to drink. You know that. I know that. 172 00:12:58,520 --> 00:13:03,460 So I will put it in my warehouse under perfect storage conditions for you. 173 00:13:04,100 --> 00:13:09,640 And unlike other storage warehouses, I am going to store it for you at no cost 174 00:13:09,640 --> 00:13:11,240 for as long as you'd like. 175 00:13:12,440 --> 00:13:16,380 It's appreciating in value and likely taste and whatever else. 176 00:13:16,800 --> 00:13:19,360 So it's kind of a win -win from the customer's perspective. 177 00:13:20,620 --> 00:13:24,540 All the while, that's kind of giving Fox his window of opportunity to perpetrate 178 00:13:24,540 --> 00:13:25,540 his scheme. 179 00:13:26,660 --> 00:13:28,780 It's a remarkably simple scheme. 180 00:13:29,340 --> 00:13:33,060 In some cases, Fox just doesn't have the wine. 181 00:13:33,520 --> 00:13:37,740 He's busy and never gets around to actually ordering it from France. 182 00:13:38,020 --> 00:13:39,540 He'll worry about it later. 183 00:13:40,880 --> 00:13:43,280 Que sera, sera, whatever will be, will be. 184 00:13:44,120 --> 00:13:50,080 Only when you asked for that wine to be shipped to you did John Fox begin to 185 00:13:50,080 --> 00:13:52,480 jump around and see if he could find it for you. 186 00:13:53,440 --> 00:13:58,220 In other cases, Fox does, in fact, have a client's wine in his warehouse. 187 00:13:58,920 --> 00:14:03,060 The problem is, several other clients think it's theirs, too. 188 00:14:03,950 --> 00:14:09,210 So John Fox also sold one bottle of wine multiple times. He did this over and 189 00:14:09,210 --> 00:14:12,750 over again. And he was very good about it. He didn't get caught. 190 00:14:14,210 --> 00:14:18,690 Fox gets away with it because most of his clients are in for the long haul. 191 00:14:19,050 --> 00:14:21,990 And only a small minority take delivery. 192 00:14:23,470 --> 00:14:26,630 And those who do are often satisfied. 193 00:14:27,590 --> 00:14:32,670 It was no obvious red flag initially, other than it took them too long. 194 00:14:33,290 --> 00:14:39,030 But too long was always kind of a debatable period of time because of the 195 00:14:39,030 --> 00:14:41,510 nature of buying wine futures to begin with. 196 00:14:41,730 --> 00:14:45,850 It didn't scream out to me that this was some sort of wine Ponzi scheme at the 197 00:14:45,850 --> 00:14:46,850 time. 198 00:14:47,590 --> 00:14:53,370 So he had this huge juggling act going on by selling one bottle of wine 199 00:14:53,370 --> 00:14:56,670 multiple, multiple times. But he managed to get away with it for many, many 200 00:14:56,670 --> 00:14:57,670 years. 201 00:14:58,970 --> 00:15:00,850 Not only does he get away with it. 202 00:15:01,930 --> 00:15:05,410 John Fox prospers beyond his wildest dreams. 203 00:15:06,710 --> 00:15:13,350 He rides an epic wave created by the once -in -a -lifetime combination of 204 00:15:13,350 --> 00:15:20,170 fortunes in China and ideal growing conditions. Perfect summers in southwest 205 00:15:20,170 --> 00:15:27,050 France. There was a great vintage 2009 in Bordeaux. There was possibly even a 206 00:15:27,050 --> 00:15:29,390 greater vintage 2010 in Bordeaux. 207 00:15:30,240 --> 00:15:33,740 People wanted that wine. They wanted to lock it up. And they knew it was wine 208 00:15:33,740 --> 00:15:38,960 that was going to be many, many, many years, decades even, before it was at 209 00:15:38,960 --> 00:15:40,000 ideal drinking point. 210 00:15:40,220 --> 00:15:42,220 And so the money just flowed in. 211 00:15:44,080 --> 00:15:47,480 And John Fox finds plenty of ways to spend it. 212 00:15:50,060 --> 00:15:56,680 In 2011, he buys a building that once housed a run -down art supply store, 213 00:15:56,680 --> 00:15:57,720 a renowned architect, 214 00:15:58,430 --> 00:16:03,030 and transforms it into a sparkling, state -of -the -art retail store in 215 00:16:03,030 --> 00:16:04,030 Berkeley. 216 00:16:04,750 --> 00:16:10,150 Oh, gorgeous, you know, that's why, come on, he must be making money, you know, 217 00:16:10,150 --> 00:16:11,350 this place is beautiful. 218 00:16:12,110 --> 00:16:15,850 We walked in, and the floors were made of bamboo. 219 00:16:16,090 --> 00:16:22,270 The shelves holding the bottles of wine were mahogany. There were French -type 220 00:16:22,270 --> 00:16:23,610 tapestries on the wall. 221 00:16:24,430 --> 00:16:29,550 The highest -priced wines were kept in a glass -fronted storage room to the 222 00:16:29,550 --> 00:16:34,150 right as you walked in. So the impact was stunning. I mean, it was a 223 00:16:34,150 --> 00:16:38,570 experience when you walked in. You were really overwhelmed by the beauty of that 224 00:16:38,570 --> 00:16:39,570 store. 225 00:16:39,650 --> 00:16:45,790 And former customers say that, you know, when John opened that store in 2011, 226 00:16:45,990 --> 00:16:47,510 things really seemed to change. 227 00:16:48,240 --> 00:16:52,800 All of a sudden, he seemed to be catering to the very, very rich. And one 228 00:16:52,800 --> 00:16:57,660 told me that employees had been dressing in jeans and shirts, but all of a 229 00:16:57,660 --> 00:17:01,200 sudden they were dressing in suits and they had pseudo -British accents. 230 00:17:04,000 --> 00:17:07,460 There's a lot of pretending going on at Premier Crew. 231 00:17:08,760 --> 00:17:11,460 Not to mention juicy secret. 232 00:17:13,839 --> 00:17:14,839 Up next. 233 00:17:15,530 --> 00:17:20,470 See how one man spends nearly $1 million on Internet dating. 234 00:17:33,810 --> 00:17:40,050 Flush with cash because he's running a fine wine fraud, John Fox moves into a 235 00:17:40,050 --> 00:17:43,070 .3 million mansion in Alamo, California. 236 00:17:43,830 --> 00:17:46,070 a suburb east of San Francisco. 237 00:17:47,510 --> 00:17:51,430 It's a very exclusive community, a very beautiful community. 238 00:17:51,810 --> 00:17:56,810 He and his wife bought a house there. He had memberships in two private golf 239 00:17:56,810 --> 00:18:02,110 courses. He paid for his daughter's college tuition with money that he stole 240 00:18:02,110 --> 00:18:03,550 from Premier Group clients. 241 00:18:03,890 --> 00:18:07,010 And, of course, he had quite a collection of fine cars. 242 00:18:08,200 --> 00:18:11,700 Very fancy cars, Ferraris, Maseratis, multiple Mercedes. 243 00:18:12,180 --> 00:18:16,040 You know, he rarely kept a car for more than a year, always trading in for a new 244 00:18:16,040 --> 00:18:19,480 souped -up muscle car or a new Italian sports car. 245 00:18:20,900 --> 00:18:26,400 In bohemian Berkeley, where the car of choice is more like a Toyota Prius, 246 00:18:26,580 --> 00:18:29,780 Fox's flashiness stands out. 247 00:18:32,200 --> 00:18:33,200 Melissa Smith. 248 00:18:33,720 --> 00:18:39,440 who works in sales for Premier Crew, says Fox's employees take note and give 249 00:18:39,440 --> 00:18:41,380 their boss a thumbs down. 250 00:18:43,000 --> 00:18:49,460 He would always park halfway between the only handicapped space 251 00:18:49,460 --> 00:18:54,700 and the spot next to it. Every single day, backed into it. It drove me insane. 252 00:18:54,700 --> 00:18:58,140 There were several times I thought about calling the local police department 253 00:18:58,140 --> 00:19:00,540 just to have it ticketed or towed. 254 00:19:02,570 --> 00:19:05,630 Fox lives like he has the world on a string. 255 00:19:06,350 --> 00:19:13,150 He and his wife Gail, nearly 20 years younger, enjoy fine meals and live la 256 00:19:13,150 --> 00:19:14,150 dolce vita. 257 00:19:14,790 --> 00:19:19,170 But for John Fox, one woman is not nearly enough. 258 00:19:22,080 --> 00:19:26,840 confessed in his plea agreement that he had spent $900 ,000 on online dating. 259 00:19:27,160 --> 00:19:34,160 And he dated younger women exclusively, women in their 20s, even though he was 260 00:19:34,160 --> 00:19:38,920 in his 60s at this time. And although this might seem strange, there's a whole 261 00:19:38,920 --> 00:19:42,720 world out there that matches up sugar daddies with sugar babies. 262 00:19:43,000 --> 00:19:47,180 And it's usually older men who have a lot of money who are looking to date 263 00:19:47,180 --> 00:19:48,180 younger women. 264 00:19:49,360 --> 00:19:53,980 Sometimes for sex, sometimes not for sex, just to have them on their elbows. 265 00:19:54,820 --> 00:19:59,940 And these younger women, they are often college students, and they sign up on 266 00:19:59,940 --> 00:20:03,420 these sites, and they have these men pay for their apartments, they have them 267 00:20:03,420 --> 00:20:05,700 pay tuition, they have them pay rent. 268 00:20:07,680 --> 00:20:10,660 We blurred their faces to protect their privacy. 269 00:20:11,260 --> 00:20:15,980 But these are among the many, many images of women John Fox collected 270 00:20:15,980 --> 00:20:21,180 adventures on websites such as SeekingArrangements .com. 271 00:20:23,020 --> 00:20:28,080 He might pay them $500 to meet them for a cup of coffee, and if they hit it off, 272 00:20:28,200 --> 00:20:30,700 then they may enter a physical relationship. 273 00:20:31,540 --> 00:20:38,440 He would basically pay to have these women maintain a nice lifestyle and come 274 00:20:38,440 --> 00:20:39,560 visit him from time to time. 275 00:20:40,060 --> 00:20:45,800 And he did this for a number of years, and he met these people, usually in 276 00:20:45,800 --> 00:20:51,560 Berkeley, because they would fly here, and he would pay them whatever their fee 277 00:20:51,560 --> 00:20:54,760 was, and this went on for a long period of time. 278 00:20:56,720 --> 00:21:02,300 I spoke with one woman who told me she was one of John Fox's girlfriends, and 279 00:21:02,300 --> 00:21:07,520 John Fox spent more than $200 ,000 on her, mostly for her living expenses and 280 00:21:07,520 --> 00:21:08,520 her tuition expenses. 281 00:21:09,290 --> 00:21:11,670 Now, she claims she never had sex with John Fox. 282 00:21:11,890 --> 00:21:15,290 I don't know that I believe that. I'm not sure why anyone would spend that 283 00:21:15,290 --> 00:21:17,310 money without having a little more from the relationship. 284 00:21:18,110 --> 00:21:23,950 But John Fox dated so many women that it began to attract attention. 285 00:21:26,550 --> 00:21:33,270 At the Artiste Cafe, his local hangout, baristas brazenly snapped pictures of 286 00:21:33,270 --> 00:21:34,670 Fox and friends. 287 00:21:35,920 --> 00:21:40,640 Melissa Smith says that while Fox often leaves for afternoon appointments, he 288 00:21:40,640 --> 00:21:44,420 tells employees he's getting his back cracked. 289 00:21:46,960 --> 00:21:51,960 We had no idea, but literally as far as we knew he was going to the chiropractor 290 00:21:51,960 --> 00:21:55,300 once or twice a day, it was a shock to all of us. 291 00:21:57,280 --> 00:21:58,900 Next on American Greed. 292 00:21:59,920 --> 00:22:04,800 John Fox will need more than a chiropractor to fix the mess he's made 293 00:22:04,800 --> 00:22:05,800 Crew. 294 00:22:18,360 --> 00:22:23,500 John Fox enjoys fast cars and faster women. 295 00:22:24,260 --> 00:22:27,560 He makes his money selling the proverbial Brooklyn Bridge. 296 00:22:28,250 --> 00:22:29,370 Fine wine style. 297 00:22:30,490 --> 00:22:32,350 There were the orders that he completely made up. 298 00:22:32,910 --> 00:22:38,010 I have 300 bottles of this particular Bordeaux at this particular price. 299 00:22:39,450 --> 00:22:44,210 Come buy them. And he had no contract to buy any of that. And in his head, at 300 00:22:44,210 --> 00:22:47,890 times, he may have justified it to himself, and he said that he thought 301 00:22:47,890 --> 00:22:50,230 able to get them or some of them if he needed to. 302 00:22:52,390 --> 00:22:55,070 Fox is running hard to stay on the treadmill. 303 00:22:55,840 --> 00:23:01,860 His scheme depends entirely upon new infusions of cash from wine drinkers 304 00:23:01,860 --> 00:23:05,420 to get their hands on the latest release from Bordeaux. 305 00:23:05,980 --> 00:23:07,340 But here's the rub. 306 00:23:07,720 --> 00:23:14,320 After two epic years in 2009 and 2010, the vintages that follow are mediocre, 307 00:23:14,620 --> 00:23:17,140 and the critics' ratings go down. 308 00:23:18,480 --> 00:23:23,620 But despite the disappointing harvest, the Bordeaux winemakers keep their 309 00:23:23,620 --> 00:23:24,620 high. 310 00:23:24,810 --> 00:23:25,749 Guess what? 311 00:23:25,750 --> 00:23:29,870 Americans said, nuh -uh, I'm not buying, not buying. 312 00:23:30,710 --> 00:23:34,610 Why should I buy wines that haven't been praised by the critics? And it's just 313 00:23:34,610 --> 00:23:35,610 getting too expensive. 314 00:23:36,450 --> 00:23:40,070 He got basically zero, zero money on those. 315 00:23:41,670 --> 00:23:43,410 Fox is in a cash crunch. 316 00:23:45,070 --> 00:23:46,930 And the timing is terrible. 317 00:23:47,930 --> 00:23:53,270 He's just moved into that mansion and built a beautiful new store. 318 00:23:55,080 --> 00:23:58,280 And now his scheme is becoming untenable. 319 00:23:59,500 --> 00:24:04,300 Despite his claims, Fox doesn't have contracts with French Chateau. 320 00:24:04,500 --> 00:24:09,820 He must buy wine at top -dollar retail prices to satisfy his customers. 321 00:24:12,190 --> 00:24:17,010 You, as a customer, might have 40 bottles outstanding that Premier Crew 322 00:24:17,010 --> 00:24:20,730 you, and you complain enough, and he would go and buy 10 of them at some 323 00:24:20,730 --> 00:24:23,930 expensive price and losing money on those bottles and say, I got you these 324 00:24:23,930 --> 00:24:27,130 bottles, and we're going to get the next 30 at some point. 325 00:24:28,290 --> 00:24:30,550 Fox has always been slow to deliver. 326 00:24:31,610 --> 00:24:34,850 Now the wait times become agonizing. 327 00:24:35,890 --> 00:24:39,950 I had kept this little file of wines that I had ordered in various years, 328 00:24:41,660 --> 00:24:45,840 One day I opened that file on my computer and I looked at it and said, 329 00:24:46,160 --> 00:24:48,600 this vintage is nearly five years ago. 330 00:24:49,340 --> 00:24:53,380 And I thought, well, I should have that wine by now. 331 00:24:53,740 --> 00:24:54,980 And then I called them. 332 00:24:56,680 --> 00:25:01,960 Melissa Smith is one of Fox's salespeople, fielding an ever -growing 333 00:25:01,960 --> 00:25:04,080 calls from concerned customers. 334 00:25:04,980 --> 00:25:10,700 And at first, Smith repeats the company line that the wine is on its way. 335 00:25:12,179 --> 00:25:16,320 We thought he was organized. That was the impression he gave everyone, that 336 00:25:16,320 --> 00:25:20,760 he would give us a date that containers were going to arrive, that that was 337 00:25:20,760 --> 00:25:23,560 actually valid information that he was pulling out of somewhere. 338 00:25:25,200 --> 00:25:27,880 Initially, they were like, oh, you know, we've got a container ship. 339 00:25:29,580 --> 00:25:33,060 Ultimately, it was like those bars that have those signs that say free beer 340 00:25:33,060 --> 00:25:34,060 tomorrow. 341 00:25:34,760 --> 00:25:37,720 That's what ended up happening. But at the time, they said, oh, you know, it's 342 00:25:37,720 --> 00:25:39,200 going to be on the next container ship out. 343 00:25:41,130 --> 00:25:46,830 But Smith, who is hired toward the end of Premier Crew's run, quickly realizes 344 00:25:46,830 --> 00:25:50,410 her faith in her new boss has been misplaced. 345 00:25:51,930 --> 00:25:57,010 A co -worker welcomes Smith with this anonymous note stuck to her phone. 346 00:25:57,770 --> 00:25:58,910 Get out now. 347 00:25:59,610 --> 00:26:01,770 Run away while you still have the chance. 348 00:26:03,530 --> 00:26:07,870 And Smith realizes Fox's business affairs are out of control. 349 00:26:08,430 --> 00:26:13,850 As suggested by this photograph, she secretly takes of him at his desk. 350 00:26:14,510 --> 00:26:19,550 It became very clear to me early on that he was pulling dates out of the air as 351 00:26:19,550 --> 00:26:21,010 far as when things would actually arrive. 352 00:26:22,270 --> 00:26:27,490 It was always the next container ship. Didn't make it on this one. I thought, 353 00:26:27,490 --> 00:26:31,950 spidey senses are starting to tingle here, and I'm going to have to ratchet 354 00:26:31,950 --> 00:26:32,950 the pressure here. 355 00:26:33,490 --> 00:26:36,590 Higgins logs on to Wine Berserkers. 356 00:26:37,020 --> 00:26:42,540 a forum for wine collectors, and realizes he has unwittingly joined a 357 00:26:42,540 --> 00:26:44,240 of the dispossessed. 358 00:26:44,600 --> 00:26:46,980 My eyes went, holy cow. 359 00:26:48,300 --> 00:26:50,880 I'm not the only one wondering where his wine is. 360 00:26:52,200 --> 00:26:56,860 The Yelp reviews of John Fox's Premier Crew are just as bad. 361 00:26:57,740 --> 00:27:04,020 And I saw these universally horrible reviews about Premier Crew, saying... 362 00:27:04,590 --> 00:27:06,730 stay away, stay away. 363 00:27:07,130 --> 00:27:13,110 But there was one post that said, these guys are the best wine store in the 364 00:27:13,110 --> 00:27:17,810 world. They are the best. How can anybody say anything bad? Blah, blah, 365 00:27:17,910 --> 00:27:20,930 blah, blah. And it was signed John F. 366 00:27:21,710 --> 00:27:28,470 And I said, hmm, I wonder, would the owner of the store post that? 367 00:27:28,550 --> 00:27:29,550 Just possibly. 368 00:27:31,660 --> 00:27:36,020 Paul Higgins takes the complaints out of web forums to the big leagues. 369 00:27:37,260 --> 00:27:43,320 The Hagler, a consumer advocacy column in the Sunday New York Times, takes up 370 00:27:43,320 --> 00:27:46,040 Higgins' case and investigates Premier Cruz. 371 00:27:46,500 --> 00:27:49,180 It's just enough to break open the dam. 372 00:27:50,420 --> 00:27:57,080 Before long, John Fox is drowning in a flood of lawsuits and irate customers. 373 00:27:57,900 --> 00:28:00,380 Every single phone call was... 374 00:28:00,920 --> 00:28:02,980 Where's my wine? Where's my refund check? 375 00:28:03,720 --> 00:28:04,720 You lied to me. 376 00:28:05,320 --> 00:28:07,900 It was supposed to be here by now. This check bounced. 377 00:28:08,900 --> 00:28:11,520 Put John on the phone. Put John on the phone. Put John on the phone. 378 00:28:12,650 --> 00:28:17,670 And I called up John Fox and asked him why all these collectors were 379 00:28:17,670 --> 00:28:19,370 about not getting their wine. 380 00:28:19,610 --> 00:28:25,690 And Fox said that they were sort of unsophisticated Asian collectors who did 381 00:28:25,690 --> 00:28:31,710 understand the time gap between buying wine pre -arrival and its actual arrival 382 00:28:31,710 --> 00:28:32,710 in the United States. 383 00:28:33,440 --> 00:28:38,500 It was certainly not a flattering way to talk about customers who had spent, one 384 00:28:38,500 --> 00:28:44,740 man had spent $900 ,000 with John Fox and Premier Crew and had filed a lawsuit 385 00:28:44,740 --> 00:28:48,920 when he didn't get any wine or any refund. And John just dismissed them 386 00:28:48,920 --> 00:28:50,860 as this wannabe collector. 387 00:28:52,680 --> 00:28:56,600 I really started getting worried, actually, when I was reading about all 388 00:28:56,600 --> 00:28:57,740 lawsuits coming in. 389 00:28:58,660 --> 00:29:00,000 That's how I knew, okay, 390 00:29:01,040 --> 00:29:02,260 I'm not going to get my stuff. 391 00:29:04,040 --> 00:29:05,460 Emotions are running hot. 392 00:29:06,120 --> 00:29:11,560 Smith recalls talking to a secretary for a Chinese multimillionaire who was owed 393 00:29:11,560 --> 00:29:14,200 $200 ,000 worth of wine. 394 00:29:14,880 --> 00:29:19,780 She went from calling very stoic, very professional, to in tears. 395 00:29:20,660 --> 00:29:26,760 We were only semi -joking that we were afraid for her. It sounded like she was 396 00:29:26,760 --> 00:29:30,800 going to be in trouble if the wines didn't arrive for her boss. 397 00:29:32,110 --> 00:29:36,790 And then he showed up with a brand new Corvette or something. 398 00:29:37,690 --> 00:29:43,790 And I just thought, wow, the monthly payment on that could cover 399 00:29:43,790 --> 00:29:47,710 a case or two of what we owed her boss. 400 00:29:49,690 --> 00:29:54,330 Other customers sometimes show up in person demanding their wine. 401 00:29:55,400 --> 00:29:59,200 If somebody ended up coming in and literally just taking everything off the 402 00:29:59,200 --> 00:30:02,420 shelves and walking out with it and just said, call the cops, try to stop me. 403 00:30:03,500 --> 00:30:05,520 We didn't, we weren't going to. 404 00:30:06,120 --> 00:30:08,600 Yeah, do it. Go for it. 405 00:30:08,960 --> 00:30:09,960 Help yourself. 406 00:30:13,300 --> 00:30:16,060 Can things get any worse for John Fox? 407 00:30:17,980 --> 00:30:19,780 Yes, they can. 408 00:30:21,520 --> 00:30:23,460 John Fox is online dating. 409 00:30:24,080 --> 00:30:26,160 eventually came back to haunt him. 410 00:30:27,640 --> 00:30:31,160 Up next, sextortion in Seattle. 411 00:30:32,340 --> 00:30:38,340 20 times a day, just constantly emailing, texting, calling, pay me, pay 412 00:30:38,340 --> 00:30:39,340 me. 413 00:30:47,100 --> 00:30:52,700 John Fox uses dating apps to summon women as casually as most people call an 414 00:30:52,700 --> 00:30:53,700 Uber. 415 00:30:54,890 --> 00:30:58,630 and he pays the women with money he has stolen from clients. 416 00:30:59,730 --> 00:31:04,990 But in this modern -day version of free love, the bill has come due. 417 00:31:07,990 --> 00:31:13,230 There was a woman that he had met online, out of state, and they had a 418 00:31:13,230 --> 00:31:19,230 relationship, shall I say, a physical relationship, and he ended it shortly 419 00:31:19,230 --> 00:31:22,270 after it began, and this woman... 420 00:31:22,860 --> 00:31:27,140 Realized an opportunity to make some money off this and she threatened to 421 00:31:27,140 --> 00:31:30,680 the relationship to his wife and his daughter and all their friends and 422 00:31:30,680 --> 00:31:35,840 Her name is soul key job 423 00:31:35,840 --> 00:31:42,760 According to a criminal complaint from Seattle where she lives yum is a 424 00:31:42,760 --> 00:31:44,440 serial extortionist 425 00:31:46,570 --> 00:31:52,370 The King County prosecutor alleges Yum meets wealthy men through services like 426 00:31:52,370 --> 00:31:56,050 OkCupid and SeekingArrangements .com. 427 00:32:03,810 --> 00:32:08,550 Once the men meet her and have sex, the nightmare begins. 428 00:32:10,410 --> 00:32:16,200 She would confront other people that she did this with and tell them that They 429 00:32:16,200 --> 00:32:18,320 got her pregnant. She needed an abortion. 430 00:32:24,580 --> 00:32:30,420 Unless they paid for the abortion and continued giving her money, she would 431 00:32:30,420 --> 00:32:32,280 their lives. So she was very aggressive. 432 00:32:43,630 --> 00:32:50,330 One man in Seattle, according to the prosecutor, pays Yum $24 ,000 in 433 00:32:50,330 --> 00:32:51,330 hush money. 434 00:32:53,710 --> 00:32:56,910 But that's nothing compared to John Fox. 435 00:32:57,590 --> 00:33:03,950 Yum knows that Fox's wife is unaware of what her husband is up to, and she 436 00:33:03,950 --> 00:33:07,530 exploits that for big money over a two -year period. 437 00:33:08,290 --> 00:33:10,350 It begins in 2014. 438 00:33:11,560 --> 00:33:13,920 Yum sends dozens of messages. 439 00:33:19,500 --> 00:33:24,140 And Fox sends thousands of dollars to buy her silence. 440 00:33:25,380 --> 00:33:28,860 But by June 2014, he's had enough. 441 00:33:29,780 --> 00:33:34,900 You can't expect me to keep sending you money. We are supposed to be done now. 442 00:33:35,000 --> 00:33:37,520 At least three times we've been through this. 443 00:33:37,840 --> 00:33:40,640 I've already sent you tens of thousands of dollars. 444 00:33:41,260 --> 00:33:42,380 I can't do it anymore. 445 00:33:43,460 --> 00:33:44,460 Sorry. 446 00:33:46,680 --> 00:33:49,660 But Yum isn't about to let him off the hook. 447 00:33:51,080 --> 00:33:54,800 She was very good at Facebook research and online presence. 448 00:33:55,560 --> 00:34:00,260 She dug and found a lot about his family and used that all to manipulate more 449 00:34:00,260 --> 00:34:01,420 and more money out of him. 450 00:34:03,060 --> 00:34:06,640 Yum figures out how much Fox paid for his house. 451 00:34:07,850 --> 00:34:14,469 And when Fox's wife posts on Facebook, I love my everyday driver, Audi 452 00:34:14,469 --> 00:34:16,030 USA R8. 453 00:34:17,710 --> 00:34:24,270 Yum sends a screenshot of the post and writes, If you supposedly don't have 454 00:34:24,270 --> 00:34:27,310 money, why does your wife have an R8? 455 00:34:28,850 --> 00:34:35,110 Fox continues to send payments through 2015, while Premier Crew is 456 00:34:35,110 --> 00:34:36,110 imploding. 457 00:34:37,420 --> 00:34:43,760 It's sad in many respects because, you know, he got himself into this position. 458 00:34:43,940 --> 00:34:47,020 He didn't know that this woman was going to do this to him. 459 00:34:47,860 --> 00:34:51,080 But if you're going to play, you're usually going to have to pay. 460 00:34:51,500 --> 00:34:53,500 And he learned it the hard way. 461 00:34:55,679 --> 00:34:56,880 By 2016, 462 00:34:57,800 --> 00:34:59,540 Yum is merciless. 463 00:35:00,980 --> 00:35:03,820 She writes, OK, Sackett. 464 00:35:04,680 --> 00:35:06,880 You are really testing my patience. 465 00:35:07,920 --> 00:35:14,640 If I don't have my 15K and the 4K next week, I will send you to jail, you 466 00:35:14,640 --> 00:35:16,000 stupid piece of s***. 467 00:35:17,920 --> 00:35:24,140 In some instances, 20 times a day. Just constantly, you know, emailing, texting, 468 00:35:24,300 --> 00:35:26,500 calling, pay me, pay me, pay me. 469 00:35:27,020 --> 00:35:29,380 It was overwhelming, I think, for him at times. 470 00:35:32,880 --> 00:35:36,880 And it's not just Fox's wife who is a pawn in this game. 471 00:35:37,220 --> 00:35:40,960 Yum threatens to expose the affair to his daughter. 472 00:35:41,980 --> 00:35:47,780 She was at the time going to college at the University of Arizona and 473 00:35:47,780 --> 00:35:54,700 learned about her father's escapades with this woman because the 474 00:35:54,700 --> 00:35:55,760 woman contacted her. 475 00:35:57,160 --> 00:36:01,160 Yum even emails the president of the girl's sorority. 476 00:36:02,120 --> 00:36:03,500 It was a nightmare. 477 00:36:04,160 --> 00:36:05,600 And she was crazy. 478 00:36:07,040 --> 00:36:13,000 Toward the end of this two years of torture, Yum claims she has a recording 479 00:36:13,000 --> 00:36:16,660 John Fox admitting to running a massive wine fraud. 480 00:36:16,980 --> 00:36:22,800 She writes, What the is wrong with you? 481 00:36:23,420 --> 00:36:29,040 Make it happen. I'm selling it to a guy in New York I've been talking to whom 482 00:36:29,040 --> 00:36:33,580 you owe a sh... Ton of wine to who wants you in jail. 483 00:36:34,140 --> 00:36:37,580 Answer me ASAP or I proceed with them. 484 00:36:39,020 --> 00:36:42,560 Little Pacino at that point, his life was already crashing around, so she 485 00:36:42,560 --> 00:36:43,760 really have any leverage on him anymore. 486 00:36:45,840 --> 00:36:51,480 Up next, the sly fox turns the tables on his blackmailer. 487 00:37:05,800 --> 00:37:12,780 On January 6th, 2016, employee Melissa Smith gets an email from John 488 00:37:12,780 --> 00:37:14,320 Fox, a premier crew. 489 00:37:14,620 --> 00:37:17,880 It's a termination letter, and it's painfully blunt. 490 00:37:18,460 --> 00:37:20,560 I can't afford to pay you anymore. 491 00:37:21,020 --> 00:37:23,120 No revenue, no funds. 492 00:37:23,860 --> 00:37:24,860 Sorry. 493 00:37:26,160 --> 00:37:32,300 He said, yikes, can you at least pay me for this week? And he said, no, I have 494 00:37:32,300 --> 00:37:34,400 no money the last few days. 495 00:37:35,240 --> 00:37:36,240 Sure. 496 00:37:36,620 --> 00:37:39,560 Fox and Premier Crew filed for bankruptcy. 497 00:37:40,660 --> 00:37:42,900 The numbers are staggering. 498 00:37:43,720 --> 00:37:50,040 They claimed $7 million in assets, basically wine, and $70 million 499 00:37:50,040 --> 00:37:56,940 in money owed to about 9 ,000 clients around the 500 00:37:56,940 --> 00:37:58,900 world. 9 ,000! 501 00:37:59,480 --> 00:38:04,000 And every one of those customers was stuck. 502 00:38:07,240 --> 00:38:11,400 They include people who lost hundreds of thousands of dollars to Premier Crewe, 503 00:38:11,560 --> 00:38:14,680 but also small -time enthusiasts. 504 00:38:16,280 --> 00:38:21,020 The man that had ordered a bottle of special champagne for his daughter's 505 00:38:21,020 --> 00:38:25,660 wedding, and he was put off and put off, and he got the runaround from Premier 506 00:38:25,660 --> 00:38:29,440 Crewe. He never got his wine, and the wedding went off without that wine. I 507 00:38:29,440 --> 00:38:31,920 thought, that hit home for him. 508 00:38:33,200 --> 00:38:39,980 While the FBI raids Premier Crewe, Seizing his records, Fox meets 509 00:38:39,980 --> 00:38:43,340 with his defense attorney and waves the white flag. 510 00:38:44,180 --> 00:38:51,140 From the get -go, he said, listen, I'm the Bernie Madoff in the wine 511 00:38:51,140 --> 00:38:54,920 business. I know what's going to happen to me. 512 00:38:55,220 --> 00:38:58,360 I want to come in and I want to cooperate. I don't want to fight this. 513 00:38:59,980 --> 00:39:04,480 And he came in and pretty much right off the bat admitted to... 514 00:39:05,000 --> 00:39:10,600 Everything that he had done, I think he was a broken man at that point. 515 00:39:11,760 --> 00:39:15,840 He'd been basically living a lie with everybody in his life. His family, his 516 00:39:15,840 --> 00:39:19,400 wife doesn't know about the women he met online. His employees don't know about 517 00:39:19,400 --> 00:39:20,440 the fraud he's running. 518 00:39:20,980 --> 00:39:25,740 Everybody he interacts with every single day, he's living a lie with. And I 519 00:39:25,740 --> 00:39:28,600 think the weight of that becomes crushing over time. 520 00:39:29,740 --> 00:39:33,320 I really do think that it was an unburdening of him to tell the story of 521 00:39:33,320 --> 00:39:34,320 he'd been doing for... 522 00:39:34,330 --> 00:39:38,870 More than 20 years lying to people for that long and stealing so much money 523 00:39:38,870 --> 00:39:40,070 so many innocent victims. 524 00:39:40,550 --> 00:39:43,690 He also mentioned to us, hey, I'm being extorted. I'm basically being 525 00:39:43,690 --> 00:39:45,250 blackmailed even as we speak. 526 00:39:47,290 --> 00:39:50,810 And, you know, of course, it's kind of hard to hear coming from this guy who 527 00:39:50,810 --> 00:39:53,570 just built millions of dollars. You don't have a lot of sympathy. 528 00:39:54,750 --> 00:40:01,110 But the law doesn't require sympathetic victims, just clear evidence of a crime. 529 00:40:01,990 --> 00:40:03,150 And John Fox. 530 00:40:03,690 --> 00:40:09,710 who has paid Sol Ki -yum more than $200 ,000, agrees to record his conversations 531 00:40:09,710 --> 00:40:10,710 with her. 532 00:40:11,230 --> 00:40:15,570 She said over and over again, just, you know, these expletive -laced tirades 533 00:40:15,570 --> 00:40:19,410 about how she's going to ruin his life and he's such a terrible person and you 534 00:40:19,410 --> 00:40:21,670 better pay me or it's all crashing down around you. 535 00:40:23,130 --> 00:40:26,350 Yum pleads guilty to five counts of extortion. 536 00:40:27,050 --> 00:40:32,850 She is ordered to pay $277 ,000 to be distributed to Fox's victims. 537 00:40:34,550 --> 00:40:38,350 John Fox pleads guilty to one count of wire fraud. 538 00:40:38,770 --> 00:40:45,390 And on December 14, 2016, John Fox is sentenced to six and a half years in 539 00:40:45,390 --> 00:40:46,390 federal prison. 540 00:40:48,590 --> 00:40:53,870 Francis Dinkelspiel, who was there in federal court, notes that Fox seems 541 00:40:53,870 --> 00:40:55,070 utterly alone. 542 00:40:55,700 --> 00:40:59,480 When he was in federal court, there was no one in the courtroom there for John 543 00:40:59,480 --> 00:41:03,660 Fox. His wife didn't show up. She actually moved back to the Philippines, 544 00:41:03,660 --> 00:41:05,220 his daughter was nowhere to be seen. 545 00:41:06,380 --> 00:41:12,760 He lost his wife, and he seems to have lost his daughter as well. So I think 546 00:41:12,760 --> 00:41:15,720 he's paying a very high price for his crime. 547 00:41:18,540 --> 00:41:22,800 George Ziccarelli loses $300 ,000 worth of wine. 548 00:41:24,230 --> 00:41:27,530 Paul Higgins is stiffed out of $20 ,000. 549 00:41:29,130 --> 00:41:34,730 Ultimately, thanks in part to the Hagler, his American Express card covers 550 00:41:34,730 --> 00:41:35,730 loss. 551 00:41:36,310 --> 00:41:40,930 But when it comes to John Fox, perhaps the saying is true. 552 00:41:41,450 --> 00:41:43,950 Character is destiny. 553 00:41:45,650 --> 00:41:48,510 Double parking in a handicapped spot. 554 00:41:48,810 --> 00:41:51,090 I tend not to like people like that. 555 00:41:51,920 --> 00:41:56,480 And I also tend not to like people that take millions of dollars of other 556 00:41:56,480 --> 00:42:02,360 people's money and live the high life and then they're sorry later when they 557 00:42:02,360 --> 00:42:03,360 caught. 558 00:42:03,520 --> 00:42:10,340 Nobody likes to see an older guy lose it all and end up in 559 00:42:10,340 --> 00:42:12,440 jail. But what he did was wrong. 560 00:42:12,840 --> 00:42:14,460 9 -1 -1, what is your emergency? 561 00:42:14,860 --> 00:42:16,140 Sounded like playing correct. 562 00:42:16,480 --> 00:42:17,500 The neighborhood explodes. 563 00:42:18,020 --> 00:42:19,040 Two people die. 564 00:42:19,520 --> 00:42:22,000 An insurance fraud goes very wrong. 565 00:42:22,480 --> 00:42:27,180 Roll the American Creed next Monday, 10 Eastern, CNBC. Get yours. 566 00:42:27,780 --> 00:42:32,300 The Profit of Marijuana Millions premieres tomorrow at 10, CNBC.