TRENTON – Attorney General Jeffrey Chiesa and Division of Alcoholic Beverage Control (ABC) Director Michael Halfacre today announced the details of “Operation Swill,” a raid executed the previous day by more than 100 ABC and Division of Criminal Justice investigators that targeted 29 establishments that were allegedly substituting premium alcoholic beverage brands with "well brand spirits," i.e., non-premium brands. Specifically, the ABC investigation indicates that these 29 establishments were allegedly engaging in a practice of filling premium brand bottles with non-premium brands in an effort to deceive the customer and increase their profits. The customer paid for the premium brand, but was instead, unbeknownst to the customer, poured the non-premium brand. “This alleged scheme is a dishonest ruse to increase profits, and it is a slap in the face to the consumer,” said Attorney General Chiesa. “Consumers should have the peace of mind of knowing that they will get what they spent their hard-earned money on every single time – no exceptions.” “I believe Operation Swill will go a long way towards restoring that peace of mind and will also serve as a warning to anyone currently engaging in, or thinking about engaging in, this fraudulent practice,” added Chiesa. Investigators yesterday visited the establishments, inspected the bar areas and seized all opened bottles of the following brands: Vodka: Finlandia, Smirnoff, Absolut, Grey Goose, Ketel One

Gin: Tanqueray, Bombay Sapphire, Gordon’s

Rum: Bacardi Light, Bacardi Dark, Captain Morgan Spiced

Scotch: Johnny Walker Black, Dewar’s

Whiskey: Jack Daniel’s Black Label, Jim Beam, Knob Creek, Maker’s Mark

Tequila: Jose Cuervo Silver, Jose Cuervo Gold, Patron Silver The ABC seized approximately 1,000 bottles yesterday, and that inventory is being securely stored with the ABC Investigations Bureau. The alcohol will go through more rounds of testing by the ABC and the manufacturers. The operation focused on the 29 establishments because of information from confidential informants, consumer complaints and testing of samples conducted by both the ABC and the manufacturers of the brands. The samples were taken in January and February when ABC investigators visited 63 licensed establishments across the state and covertly took 150 samples. The undercover ABC detectives visited these establishments and secured samples of premium brand spirits by paying for drinks ordered “neat” – that is with no ice or mixer. Some of the locations visited had previous complaints against them, and some were chosen at random. ABC Director Halfacre said the Division receives numerous consumer complaints about this practice every year. “These cases can be difficult to prosecute because of the fleeting nature of the offense, and evidence of the offense is nearly impossible to collect after the fact,” Halfacre said.

“The ABC made the determination that the best way to address and eradicate this problem was with a coordinated effort like ‘Operation Swill’.” Following the sample collection in January and February, the ABC tested the 150 samples using a new testing technology, a device called the True Spirit Authenticator. This machine provides a preliminary analysis of samples in a short span of time. In addition, the samples were sent to the laboratories of the brand manufacturers where additional testing of the samples was conducted. It was found that of the 150 samples 30 were not the brand they purported to be. The International Federation of Spirits Producers, which represents those manufacturers, cooperated in this process and indicated to the ABC that drink substitution was a challenge for their business. “The establishments raided yesterday by the Division of Alcoholic Beverage Control were targeted because we are taking this type of fraudulent business practice seriously,” Halfacre said. “This practice affects the entire alcoholic beverage regulatory system. Manufacturers, wholesalers, retailers and consumers are all victims of this scam.” At the time of the seizure, investigators took statements from employees and also served demands for sales records. The establishments will have seven days to provide sales and invoice records that include information about the 20 brands of interest. They will also have to provide to the ABC information about the employees that were working the day samples were taken and the retail prices from the last nine months of the targeted brands. Penalties for serving a drink other than ordered range from a 5-day suspension for the first offense to a 15-day suspension for the third offense. If further testing proves any of the seized bottles did not contain the correct labeled alcohol, that bottle could have multiple violations based on the potential drinks that could have been poured. ABC regulations could also allow for a 30-day suspension for any illegal activity on the licensed premise and those locations could also face a 30-day suspension for not cooperating in the investigation. The Division of Alcoholic Beverage Control has a toll-free hotline for citizens to report illegal activity to ABC’s Investigative Unit. Anyone with information on illegal activity is encouraged to call 1-866-713-8392. All information received via the ABC hotline will remain confidential. The following establishments were targeted in Operation Swill: Railroad Café, East Rutherford

The Brick House, Wycoff

Sunset Tavern, Burlington

Graziano’s Ristorante, Chesilhurst

Villari’s Lakeside, Gloucester Township

Yesterdays, Marmora

TGI Fridays, West Orange

Italian Affair, Glassboro

Bells Tavern, Lambertville

TGI Fridays, East Windsor

Brunswick Grove, East Brunswick

TGI Fridays, Old Bridge

TGI Fridays, North Brunswick

TGI Fridays, Piscataway

TGI Fridays, Freehold

TGI Fridays, Marlboro

TGI Fridays, Hazlet

Murray’s, Dover

TGI Fridays, East Hanover

Sona Thirteen, Morristown

Blackthorn Restaurant, Parsippany

Ruby Tuesday, Bridgewater

TGI Fridays, Linden

Café 34, Matawan

Applebee’s, Kearny

Cucina Calandara, Fairfield

TGI Fridays, Hamilton

TGI Fridays, Springfield

TGI Fridays, Clifton ####