A couple's attempt to defraud the government of cash through bootlegged wine sales was foiled in part by a supermarket ad.

On October 11, 2016, a Customs Officer driving past the Parklands Supervalue store in Bell Block, Taranaki, noticed a blackboard outside which advertised Sentry Hill Garrison boysenberry wine for sale.

Trouble was, none of the bottles of fruit wine should have been in circulation as the company who made the once award-winning drop had been placed in liquidation months before, owing $281,858 to the New Zealand Customs Service.

STUFF Wendy and Stephen Parkes, pictured in 2012, have won awards in the past for their wine but in recent times have fallen foul of the law.

A court summary of facts said Sentry Hill Winery (2006) Ltd, run by Stephen and Wendy Parkes, ran into financial trouble after failing to pay excise duty between July 2012 and January 2016.

This resulted in a successful application to the High Court by NZ Customs in April 2016 to place the venture into liquidation.

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STUFF Stephen and Wendy Parkes appeared in the New Plymouth District Court on Friday where they failed in their attempt to be discharged without conviction. (File Photo)

The winery is based on Cross Rd in North Taranaki, premises which are owned by SJ Parkes Trust No 1, of which Stephen Parkes is the sole trustee.

Following the company's liquidation, Stephen Parkes was advised the business and assets were now under the liquidators' control. This included tanks, bottling and labelling equipment, a company vehicle and a stock of bottled wine.

During discussions between Luke Norman, who was instructed by the liquidators to manage the company's affairs, and Stephen Parkes about the company's future it was decided trade would continue while a buyer for the business was sought.

The summary of facts said about $10,000 of raw materials to make wine were purchased, paid for by the liquidators on the basis it would be recovered later.

It was stated that Stephen Parkes supported the endeavour to make and sell wine and that no agreement had been made to pay him for his help "as he owed significant funds to the company".

However, on May 16, 2016, the liquidators received a letter from Stephen Parkes' lawyer, which sought payment for the lease of the trust's premises and also a hourly wage for his wine-making time.

Amid ongoing correspondence, another letter sent on June 3 by Stephen Parkes advised of an intention to cancel the company's lease of the trust's premises due to non-payment of rent.

Meanwhile, on July 1, Wendy Parkes set up Sur Le Mur Limited before she applied to NZ Customs for a licence to manufacture alcohol at the Cross Rd property. This was subsequently declined.

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 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 prior correspondence from the liquidators to Stephen Parkes outlined how he had no ability to sell wine without permission while the company was in liquidation.

When spoken to about the wine sales, Stephen Parkes claimed 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.

This was disputed by the liquidators.

During a stocktake undertaken in January 2017, alcohol was found missing from the company, including 150 litres of port, 957 litres of cider and 2500 litres of bulk Garrison Rd wine.

The total excise duty for the unaccounted alcohol was $13,676.25.

As a result of NZ Customs' investigation, charges were filed against Stephen and Wendy Parkes and Sur Le Mur Limited.

Each previously pleaded guilty to manufacturing excisable goods in an unlicensed area, selling uncustomed goods and defrauding NZ Customs of revenue.

On Friday, the couple appeared in the New Plymouth District Court, where they applied for a discharge without conviction.

This was declined by Judge Chris Sygrove, who imposed fines totalling $1000 each on Stephen and Wendy Parkes along with a $1500 penalty against Sur Le Mur Limited.

A reparation order for the unpaid excise tax was made against the couple.

Customs Manager Central and Southern Ports Joe Cannon said this was a good lesson to other New Zealand winemakers about the importance of obtaining a Customs-controlled area licence to manufacture and sell goods and paying excise duty.

"People may think that because they are a small business then they can break the rules, however, Customs takes these matters very seriously, and as seen in the this case, we will prosecute when the law is broken."