Former winemakers appeal convictions

A couple caught defrauding NZ Customs of cash by illegally selling fruit wine want their convictions quashed because they got bad legal advice.

In July, Stephen and Wendy Parkes, the former owners of Sentry Hill Winery (2006) Ltd, failed to get a discharge without conviction in the New Plymouth District Court after each pleaded guilty to manufacturing excisable goods in an unlicensed area, selling uncustomed goods and defrauding NZ Customs of revenue.

Sur Le Mur Limited, set up by Wendy Parkes, was also prosecuted and pleaded guilty to the same charges. After being convicted, District Court Judge Chris Sygrove imposed fines totalling $1000 each on Stephen and Wendy Parkes along with a $1500 penalty against the company.

A reparation order for $13,676.25 in unpaid excise tax was also made.

The charges followed the April

2016 liquidation of Sentry Hill Winery (2006) Ltd after it failed to pay $281,858 in excise duty tax between July, 2012, and January,

2016.

An agreement was reached between Luke Norman, who was instructed by the liquidators, and Stephen Parkes, to continue to trade while a buyer for the business was sought.

The summary of facts related to the offending said Stephen Parkes supported the decision to make and sell the wine and that he would not be paid for his help in the process.

However, in May 2016, the liquidators received a letter from Stephen Parkes’ lawyer, which sought payment for the lease of the trust’s premises and a hourly wage for the wine-making.

The fruit winery’s premises in North Taranaki are owned by SJ Parkes Trust No 1, of which Stephen Parkes is the sole trustee.

Meanwhile, on July 1, Wendy Parkes set up Sur Le Mur Limited. Checks carried out by NZ Customs revealed Stephen Parkes’ trust had invoiced Sur Le Mur Ltd for about $2200 in bulk red wine.

Another invoice from Sur Le Mur Limited was received by Parklands Supervalue for 720 bottles of Garrison Red wine, totalling $9360. A further invoice, dated September 15, 2016, for Super Liquor Waitara from Sur Le Mur Ltd was found for $7800 related to 600 bottles of Garrison Red Wine.

All previous correspondence from the liquidators to Stephen Parkes outlined how he had no ability to sell wine without permission.

When spoken to about the sales, Stephen Parkes said the trust had taken the product under lien due to unpaid rent. A lien is the right to keep possession of property belonging to another person until a debt owed is discharged.

At yesterday’s appeal hearing in the High Court at New Plymouth, the couple’s lawyer Julian Hannam said the ‘‘erroneous’’ legal advice the pair were given about an ability to exercise a lien was at the heart of the case and why the convictions should be overturned.

‘‘But for that advice, they would not have faced the charges before the court,’’ Hannam said.

He said Judge Sygrove failed to give the proper weight to this issue when he refused the application to discharge the couple without conviction.

Crown prosecutor Jacob Bourke said the sentencing judge was aware of the incorrect legal advice given to the couple and had factored this into the decision not to grant a discharge.

Justice David Collins reserved his decision.