READINGTON TWP. - A Hunterdon County craft beer wholesaler received a $2 million fine as part of a settlement with the state Division of Alcoholic Beverage Control over alleged trade practice violations, Attorney General Christopher S. Porrino announced on Monday.

The fine is the largest ever imposed on a single wholesale licensee for trade practice violations, according to the division.

Hunterdon Brewing Company, LLC sold draft beer tap systems at below fair market prices and concealed the charges by mislabeling them as "miscellaneous draft charges" on invoices, according to a news release. The company, located in the Whitehouse section of the township, also ignored credit regulations for at least 700 retail customers.

"Fair market prices exist for a reason," Porrino said. "The improper trade practices allegedly employed by Hunterdon Brewing threatened to disrupt competition and throw the wholesale industry into disarray.

"Consumers suffer when these laws and regulations are ignored. The division's actions ensure that New Jersey consumers will continue to benefit from a stable alcoholic beverage industry."

During its investigation, the division obtained sworn statements from more than two dozen retail licensees and reviewed thousands of documents, Porrino said. Hunterdon Brewing agreed to the fine in a consent order signed on May 31.

The fine is payable in four $500,000 installments over the next year. If required compliance audits show no substantial similar violations, the division will waive $250,000 of the last payment, according to the news release.

All the alleged offenses are violations of New Jersey statutes and regulations governing the sale and distribution of alcoholic beverages, according to the news release.

The charges stemmed from Hunterdon not maintaining accurate records and reporting delinquent accounts, according to a statement from the company.

"Hunterdon has taken steps to educate its employees on the laws and regulations of New Jersey and has established improved record keeping practices to ensure compliance," according to the statement, adding it "remains committed to delivering on its mission now and in the future."

Jonathan Orsen, acting director of the division, said, "Throughout its history, ABC has endeavored to create a level playing field that encourages fair, open and transparent competition.

"When a wholesaler utilizes discriminatory trade practices, competition among wholesalers is stifled and consumers lose the benefits which open competition provides."

Orsen said Hunterdon Brewing's parent company, Craft Beer Guild, cooperated with the investigation.

The company started in 1996 in Califon and consolidated its offices and warehouse in Phillsipburg into one location in the township. It has over 150 full-time employees, and more than 40 sales representatives, according to its website. From 100 retail customers, the Hunterdon Brewing now serves thousands across New Jersey, according to the company.