Kentucky-based lender Farm Credit Mid-America (FCMA) has filed a fraud lawsuit against Uncle Nearest, for what might be one of the most bizarre reasons in recent whiskey history.
The core of the allegation centers on an alleged $20 million loan reportedly provided to the Tennessee whiskey producer by media mogul Jay-Z. FCMA claims that Uncle Nearest intentionally concealed this significant financial arrangement, which influenced the lender's own credit decisions.
According to FCMA, Uncle Nearest's founder Fawn Weaver told the lender the US$20m was a loan from Grant Sidney, one of the Weavers’ companies. However, the $20 million was sourced from MP-Tenn LLC (also known as MarcyPen).
The venture capital firm was launched in late 2024 by a high-profile partnership including Jay-Z, Jay Brown, Larry Marcus, and Robbie and D’Rita Robinson.
FCMA’s new filings claim the Weavers “egregiously mischaracterised” the disputed transaction and the amount of details the bank knew.
The accusation is included in the latest filings of a legal battle between the lender and the whiskey brand in a lawsuit that has lasted since July 2025, when FCMA claimed Uncle Nearest owed more than US$108m across several loans and accrued interest.
The lender alleges that the brand's barrel inventory reports were fundamentally "inaccurate," claiming the values were inflated by a staggering $21 million to bolster the appearance of its collateral.
Beyond overstating assets, the suit contends that Uncle Nearest surreptitiously liquidated whiskey barrels to satisfy competing debt obligations, and mortgaged its future by discounting revenue streams to at least four separate entities.
Since then, the court has appointed a receiver for Uncle Nearest, who is now attempting to stabilise the company.
According to the receiver and FCMA, Uncle Nearest is insolvent and owes nearly US$200m, a decision that both founders Fawn and Keith Weaver have disputed.
However, in February, the receiver listed the business’ property on the Massachusetts island of Martha’s Vineyard for sale.
By October, the receiver's investigation expanded to include the potential sale of Uncle Nearest's non-income-generating assets, most notably its vineyard in Cognac, France.
Uncle Nearest owns the vineyard and estate of Domaine Saint Martin in Cognac, France.
The bank supports maintaining the receivership and expanding it to include seven additional Weaver-controlled companies that had commingled assets with Uncle Nearest, specifically involving the disputed $20 million transaction tied to Jay-Z's venture firm, MarcyPen.
According to court filings, MarcyPen has declared Uncle Nearest in default on the $20 million loan. Uncle Nearest, however, has vehemently denied any fraudulent activity, formally requesting that the court "ignore, strike, and dismiss" any allegations.
The Weavers maintain that the origin of the funds is legally irrelevant, arguing that the entirety of the capital was appropriately directed toward Uncle Nearest, its related corporate entities, or various business vendors to support the brand's operations.
Uncle Nearest founders Keith (Left) and Fawn (Right) Weaver.
The legal battle has continued to intensify as FCMA pushes to maintain the receivership, citing 20 separate loan defaults by the Weavers prior to the lawsuit. In response, the Weavers have accused the bank of "fraud on the court," alleging a pattern of unsubstantiated financial allegations with the intent to mislead the judiciary.
They contend that FCMA has consistently misrepresented Uncle Nearest’s fiscal health to justify seizing control of the company.
To explain the internal financial discrepancies, the Weavers filed a separate civil suit against former CFO Michael Senzaki, alleging that he orchestrated a massive, years-long fraud by forging stock transfers, altering invoices, and redirecting company funds to his own entities.
According to the complaint, Senzaki manipulated financial systems to project a false image of stability during a critical growth period, while surreptitiously hiding liabilities and misappropriating Fawn Weaver’s personal equity.
The Weavers maintain that this internal sabotage only surfaced after Senzaki’s departure in late 2024, arguing that his actions are responsible for any accounting irregularities.
FCMA has yet remained unmoved, asserting that the Weavers have failed to provide sufficient evidence of their own innocence or financial stability to warrant returning the company to their oversight.
Kanpai!
88 Bamboo Editorial Team
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