Former Sacred Hill Vineyards Executive Faces Serious Fraud Office Charges

The New Zealand Serious Fraud Office (SFO) has officially filed charges against a former executive and director of Sacred Hill Vineyards, alleging a sophisticated scheme to misrepresent the company’s financial health to secure lending.

Richard Foddy, who held senior leadership roles at the company, appeared in the Hastings District Court on June 2, 2026, to face 18 charges of false accounting. In six of these instances, the SFO has included an alternative charge of obtaining by deception.

Allegations of Financial Misrepresentation

According to the SFO, the charges stem from activities occurring between the financial years ending June 2017 and June 2019. The investigation alleges that Foddy artificially inflated the value of the company’s wine inventory.

These inflated figures were reportedly recorded in quarterly stock valuation spreadsheets and subsequently submitted on compliance certificates provided to the lender, Westpac. By overstating the value of assets, the prosecution claims the former director was able to secure funding that might not have been granted based on the company’s true financial standing.

The case was referred to the SFO by BDO Auckland, the firm appointed as receiver when Sacred Hill Vineyards and Sacred Hill Marlborough Vineyards went into receivership in May 2021.

Corporate Integrity and Economic Impact

SFO Director Karen Chang emphasized the gravity of the allegations, noting the broader implications for New Zealand’s economic landscape. “Corporate fraud that undermines key sectors, such as viticulture, poses a direct risk to our economy, our productivity, and our international standing. The SFO will continue to treat these cases as a priority,” Chang stated.

The viticulture industry remains a vital component of the New Zealand economy. Incidents of alleged financial misconduct within such sectors can have ripple effects, potentially impacting investor confidence and the availability of credit for other businesses operating within the industry.

Key Takeaways

• Charges Filed: Richard Foddy faces 18 charges of false accounting, with six alternate charges of obtaining by deception.
• Nature of Allegations: The SFO alleges the inflation of wine inventory values to secure funding from Westpac.
• Timeline: The alleged offending occurred between the financial years ending June 2017 and June 2019.
• Procedural Status: The case was referred by receivers BDO Auckland following the company’s 2021 receivership. Foddy is next scheduled to appear in court on June 23, 2026.

Industry Context

While the legal proceedings against the former director move forward, the Sacred Hill brand continues to function within the wine industry. Following the company’s move into receivership in 2021, its Hawke’s Bay business interests were sold in November of that year, allowing the brand to trade under new ownership.

As the legal process continues, the case serves as a reminder of the rigorous compliance requirements expected of corporate directors and the SFO’s commitment to investigating financial irregularities that threaten the integrity of New Zealand’s trade sectors.