The Division of Alcoholic Beverage Control says Laguna Grill and Martini Bar in Brigantine will close for seven days next summer and pay a $20,000 fine.
The establishment is owned by Brigantine Councilman Dominic "Tony" Pullella.
Inspectors say the scam took place from May to September.
Anonymous tips led investigators to the bar's inventory room, where they said they found a large red funnel and a cardboard sign on a liquor cabinet that read "Only save these vodka bottles. Do not throw any call to top shelf empties out."