Mendocino wine executive admits misappropriation

Stunned Mendocino County wine industry leaders grappled Thursday with an admission by the former executive of the county's Winegrape and Wine Commission that he "misappropriated" $217,803.

John Enquist, a former Sonoma County wine industry representative before he took over Mendocino's fledgling promotional efforts 10 years ago, already has paid back the amount under terms of a settlement disclosed this week.

Enquist at this point is facing no criminal or civil complaints.

"As far as we're concerned, the matter is settled, and we're moving on," said Paige Poulos, a spokeswoman for the county wine commission.

In a statement prepared for The Press Democrat, Enquist acknowledged the missing money but insisted he had only used it "to repay past debt for two financially troubled Mendocino wine industry organizations that were the foundation for the (new) commission."

The money was discovered missing earlier this year following a special audit conducted by the state Department of Food and Agriculture. Members of the county commission's executive committee asked for the audit after Enquist left his leadership post last December.

In his statement, Enquist said Thursday he has "many deep regrets" regarding his actions, but "the one I most regret is that my wife and family have had to go through these difficult times through no action of their own."

Enquist became Mendocino County's only paid, full-time wine promotion representative a decade ago.

When the Mendocino wine commission was formed in 2006 following a vote by growers and vintners, Enquist became its first president.

Enquist said Thursday in his statement that "it was always my intent to build the value of Mendocino grapes and wines."

Enquist continued to live in Rohnert Park after taking the Mendocino County post. He is now staying with relatives in Arkansas.

In the settlement reached between Enquist and the wine commission, Enquist doesn't "admit liability," although he agreed to personally repay all of the money cited by state auditors and associated legal and audit costs. The commission did not provide further details of the settlement.

Rich Schaefers, chairman of the commission, said he's satisfied because financial control measures have since been implemented by the commission to "ensure that this will never happen again."

Commission spokeswoman Poulos said Enquist left his commission post last December for "nonperformance"-related issues.

Poulos said the commission has since hired an outside accounting firm to manage about $800,000 in fees collected annually from growers and wineries.

"This incident has changed the way the commission does business," said Poulos.

Despite the assurances of Schaefers and Poulos, however, some longtime county wine leaders said Thursday they were rocked by the announcement.

"I was totally shocked," said Martha Barra, co-owner of a Redwood Valley winery with her husband, grape grower Charlie Barra.

Barra said she knew Enquist well, having worked extensively with him over the years on wine promotion efforts launched first by the former Mendocino Wine Alliance and then the county commission.

"I was never involved with the money side of the organizations, but I am in a quandary as to how any money got diverted to his own benefit," Barra said.

Barra said she and others are left to assume "that he would not pay that large of an amount if there was not some culpability there."

The Mendocino commission's membership includes 73 wineries and 343 grape growers.

You can reach Staff Writer Mike Geniella at 462-6470 or mgeniella@pressdemocrat.com.