In a case that rattled Napa wine country, former winemaker Jeffry Hill stood in federal court today and apologized as he was sentenced to three years of probation for what prosecutors described as a multimillion-dollar scheme to pass off non-Napa grapes and wine as Napa Valley product. Hill, who once ran Hill Wine Company on the Silverado Trail, told the court that his conduct destroyed his own future and hurt people who had placed their trust in him.
Prosecutors had pushed for an 18-month prison term, but U.S. District Judge Richard Seeborg instead imposed probation and signaled that Hill will likely be ordered to pay no less than $500,000 in restitution, according to The Mercury News. In a letter filed with the court, Hill wrote, “I thought I was in control,” and described volunteer work and sobriety efforts as part of how he is trying to make amends, the outlet reported.
How the Scheme Unfolded
Prosecutors say the fraud dates to 2013, when Hill allegedly bought or diverted grapes from outside Napa Valley and then altered shipping documents and records so he could sell the product as Napa American Viticultural Area fruit and wine, inflating prices for his customers, according to the U.S. Attorney’s Office. Federal rules require that a wine labeled with a specific AVA be made of at least 85 percent grapes from that region, and investigators said Hill used false bills of lading and doctored inventory records to keep the scheme hidden.
Court History
Hill was indicted by a federal grand jury in November 2016 and later pleaded guilty in 2017, as detailed by Bloomberg Law. He had already faced state proceedings after 2013 grape thefts and served time in 2015, a history noted in contemporaneous reporting by The Press Democrat.
Sentence and Restitution
Judge Seeborg chose probation instead of the prison term sought by prosecutors, citing Hill’s health, his efforts at recovery, and the lengthy litigation that has trailed the case, The Mercury News reported. The court indicated that Hill will likely face at least $500,000 in restitution, with the exact amount to be set through post-sentencing filings.
Legal and Industry Fallout
Beyond the punishment itself, the case underscores how crucial provenance and meticulous record keeping are to Napa’s premium wine market. In a 2016 release, U.S. Attorney’s Office framed Hill’s conduct as an assault on the economic value of the Napa designation. Civil claims and restitution disputes can take months to sort out, and growers who say they were shortchanged may still pursue damages in separate proceedings…