Why wine chief Scutts was found guilty of taking kickbacks

Former NZ Wine Company chief executive Peter Scutts outside the Auckland High Court. Photo / Nick Reed

Former New Zealand Wine Company chief executive Peter Scutts' kickbacks trial hinged partly on the date of a letter.

This letter offered to pay a company linked to Scutts $A1.00 for every supplied case of wine sold by Australia's Liquor Marketing Group - an entity which distributed alcohol to a network of hotels, bars and stores.

Scutts, who acted as a consultant for NZWC in 2009 and became its CEO in June 2011, would go on to receive A$53,574.21 from LMG.

The Serious Fraud Office contended this letter was sent to Scutts before NZWC entered into an agreement to supply LMG with 60,000 cases of Sauvignon Blanc in March 2011.

LMG's Douglas Finlay, however, claimed this correspondence was sent much later - in early 2012.

Finlay was adamant when giving evidence that he and Scutts agreed on the A$1 per case fee after the contract was signed and that it wasn't a reward for Scutts advising NZWC to enter into the deal.

But his contentions were rejected by Justice Mary Peters, who yesterday found Scutts guilty on all 17 charges he faced.

Sixteen were for dishonestly using a document and one was a Secret Commission Act charge of receiving secret reward for procuring contracts.

Under the Secrets Commissions Act, someone breaks the law if they advise a person to enter into a contract with a third party and receives or agrees to receive a gift or reward from that third party without the original person's consent or knowledge.

Justice Peters accepted the Crown's contention on the timing of the letter and wasn't convinced it was signed in 2012.

The judge said this letter was "compelling evidence" of an agreement necessary to establish an offence under the Secret Commissions Act.

Scutts' 16 charges of dishonest use of a document represented 16 invoices sent to LMG to obtain the A$1 per case.

The judge also found these charges to be proven, and said in her decision that the verdict on the Secret Commissions charge determined those concerning the invoices.

Scutts, who was released on bail yesterday, is expected to be sentenced in July. Justice Peters ordered a pre-sentence report be prepared, which would also look into the suitability of home detention.

The dishonest use of a document charges carry a maximum penalty of seven years' jail.