Former Grayling Brewery Owners Accused of Fraud, Liquor Violations

9&10 News uncovered documents Monday that show the former owners of a Northern Michigan brewery face fraud and liquor violations charges.

Dave and Cynthia Vargo owned Paddle Hard Brewing in Grayling.

Now, they’re facing some serious charges that we’re working to learn more details about.

Court documents show both Dave and Cynthia face a fraud charge for the sale of alcohol falsely advertised as locally brewed and the sale of liquor not allowed by their license.

Cynthia also faces an additional charge, accused of violating the state’s liquor control code.

Dave faces three liquor control code charges.

The documents claim he indirectly sold or offered to keep liquor for sale or barter, falsely labeled a container in which beer is placed for sale, and lied to an investigator.

State records show Dave applied to cancel his microbrewer, small winemaker license and on premise tasting room permit late last year.

We are still working to learn what led up to these charges, but expect to learn more when the Vargos are arraigned on Feb. 5.

We also stopped by Paddle Hard Brewing in Grayling on Monday to see if Dave or Cynthia wanted to talk to us and have yet to hear back.