An investment from Jay-Z is being put into question in the latest legal filing surrounding Uncle Nearest.
The whiskey brand launched by Fawn Weaver and her husband, Keith, is under receivership after defaulting on more than $108 million in loans from Farm Credit Mid-America, as AFROTECH™ previously reported. The receivership encompasses Uncle Nearest’s Shelbyville, TN distillery, real estate holdings, intellectual property, affiliated ventures, and related entities.
Court-appointed receiver Phillip Young Jr. claims Uncle Nearest has nearly $200 million in debt and is insolvent. He is also seeking full transparency into the brand’s financial records, including a $20 million loan from Jay-Z’s venture capital firm, MarcyPen, according to the Lexington Herald-Leader.
Farm Credit’s filing states it was informed by Weaver that the $20 million was a loan from Grant Sidney, yet it claims the money actually came from MP-Tenn LLC, otherwise known as MarcyPen. Grant Sidney is the largest shareholder of Uncle Nearest Inc. and is wholly owned by Fawn Weaver, according to the brand’s website.
“The Weaver Parties attempt to imply (incorrectly) that FCMA was in no way misled at the time. FCMA was considerably misled,” the bank said, according to the Lexington Herald Leader.
The filing claims the accounts used to move the $20 million were structured to keep the funds from being “snatched” by the bank, per the outlet. However, the bank and receiver claim they were not aware of those accounts until recently.
“Whatever protestations Ms. Weaver makes now to the contrary do not change the fact that MarcyPen loaned money to Uncle Nearest, Inc., not Grant Sidney,” the bank said, according to the Lexington Herald-Leader. “Ms. Weaver, who exercises complete control over Uncle Nearest and Grant Sidney, moved the proceeds from Uncle Nearest to Grant Sidney to make sure that $20 million coming in could not be snatched by [FCMA].”
The bank continued, “Ms. Weaver’s own testimony shows that Grant Sidney — the largest shareholder of Uncle Nearest — whose sole stockholder is also the CEO of Uncle Nearest (Ms. Weaver) and exercises complete control of both entities, orchestrated and executed a scheme to perpetuate the violation of Uncle Nearest’s legal duty, or to commit a dishonest and unjust act in contravention of FCMA’s rights.”
MarcyPen has also claimed that Uncle Nearest is in default on the loan, according to the bank’s filing.
The Weavers allegedly still deny any wrongdoing in their conduct regarding the MarcyPen $20 million loan, the Lexington Herald-Leader reports. In their filing, they claim the investment went to Uncle Nearest or related entities or vendors and are requesting that Farm Credit’s allegations be “ignored, struck, and dismissed.”
“No fraud by Grant Sidney has been alleged with the particularity required for a federal pleading,” the Weavers said, according to the outlet. “The assertion that Uncle Nearest engaged in fraudulent conduct relating to the MP-Tenn transaction is not correct.”
As AFROTECH™ previously shared, Young is looking to expand the scope of the receivership to include 4 Front Street LLC, Grant Sidney Inc., Humble Baron Inc., Nashwood Inc., Quill & Cask Owner LLC, Shelbyville Barrel House BBQ LLC, and Shelbyville Grand LLC.
Fawn and Keith Weaver are pushing for the receivership to be terminated, stating it has harmed the Uncle Nearest brand’s market position, sales volume, and overall brand value, per AFROTECH™.
Judge Charles E. Atchley Jr. is expected to finalize a decision in March 2026, per the Lexington Herald-Leader.
