More Suits Filed in State’s Grape-Switching Scandal

Two new civil lawsuits have been filed in the grape-switching scandal that has rocked the California wine industry in the past few months.

In addition, it was learned that the U.S. Attorney’s Office in Sacramento is investigating whether criminal charges should be filed in any of the cases now being prosecuted by the state. A source close to the investigation said the U.S. Attorney’s Office has issued subpoenas for documents in some cases.

A spokeswoman for the U.S. Attorney in Sacramento said her office “will not confirm or deny that any investigation is in progress.”

Meanwhile, as the 1989 wine grape harvest begins, government agencies are conducting inspections at some wineries’ stations to make sure that the grapes that are being delivered to buyers are indeed those that are stated on the weight tags.

A spokesman for the federal Bureau of Alcohol, Tobacco and Firearms, which regulates the wine industry, said an inspection program is under way to make sure that wineries and growers comply with regulations.

Compliance Specialists, a Santa Rosa-based wine industry consulting firm, sent out a special bulletin two weeks ago, warning the industry that “Government regulatory agencies are on the watch this harvest (regarding) the labeling of grape loads.”

A similar investigation by the California Department of Food and Agriculture during the 1988 harvest led to the filing of 16 suits alleging that poor-quality grapes were misrepresented as higher-quality grapes. The state is seeking $10 million in various penalties in those cases.

The two cases filed within the past few weeks will be the last ones filed relating to last year’s harvest, said Mark Urban of the state attorney general’s office, who filed the cases.

Two New Cases

“We are monitoring this year’s crush, which may include actual observance of grapes being delivered to wineries or field pickings,” said Ed O’Toole, chief analyst and acting regional director of the BATF in San Francisco. “We also have an inspection program to verify claims made on labels.”

One of the two new cases was filed against Bavaro Bros. of Escalon, a defendant in a majority of the cases filed by the state, and two other individuals. In this case, the state alleges that lower-priced French Colombard grapes were sold as higher-priced Chenin Blanc grapes. The state is seeking $161,500 in the case.

In the second case, the state is suing Antony Scotto, a wine broker; California Concentrate Co. in Lodi; and another individual. The state alleges that various mixed black grapes were sold as Zinfandel and Chenin Blanc was sold as Chardonnay. The state seeks about $250,000 in this case.