Jay-Z Pulled Into Uncle Nearest Financial Mess — Court Docs Claim $20M Was Hidden From Lender
The drama surrounding the once-celebrated whiskey brand Uncle Nearest just got a lot messier — and now Jay-Z is being mentioned in the controversy. The Grammy-winning mogul’s name has surfaced because investment partners connected to him were involved in financing tied to a $20 million loan now being examined in court, and Jay-Z‘s involvement has only added more fuel to the fire.
Media Take Out has learned that new court filings in the company’s massive financial dispute claim that $20 million tied to a loan from investors associated with Jay-Z was allegedly moved around in a way that kept it hidden from a major lender.
And the accusations in court are serious.
THE COMPANY IS ALREADY IN DEEP TROUBLE
The Tennessee whiskey company, founded by entrepreneur Fawn Weaver, has been under the control of a court-appointed receiver since last year.
Kentucky lender Farm Credit Mid-America sued the company claiming Uncle Nearest defaulted on more than $100 million in loans. Since then, the situation has only gotten worse.
According to the receiver, Uncle Nearest may actually owe more than $220 million in total debts.
THE $20 MILLION LOAN
Now the focus has shifted to a $20 million deal with an investment group called MarcyPen. According to court documents, Uncle Nearest quietly signed a note purchase agreement allowing the company to issue up to $40 million in convertible notes. The first two notes totaled $20 million.
The problem? The lender says that deal was never disclosed.
Even more troubling, the receiver claims that after Uncle Nearest received the money, founder Fawn Weaver moved nearly all of the funds into a bank account controlled by a separate company called Grant Sidney.
That account, according to the filings, is controlled solely by Weaver.
“MAKE SURE THEY COULDN’T SNATCH IT”
During testimony in court, Weaver reportedly admitted why the money was moved.
She said she and her advisors decided to structure things so the $20 million “could not be snatched” by the lender.
According to the receiver, that means the company intentionally moved cash collateral away from Uncle Nearest’s accounts to keep it out of Farm Credit’s reach.
In other words, the receiver argues the money was effectively concealed.
FINANCIAL CHAOS
Court filings paint a picture of a company with major financial problems.
The receiver claims there were nearly 500 transfers of money between Uncle Nearest and various Weaver-controlled businesses, creating what he called extensive commingling of assets.
The filings also allege:
• The company hasn’t filed tax returns since 2018
• More than $1.8 million in collateral was diverted to other parties
• The company sold $2.2 million of future revenue for only $1.6 million in cash
• Multiple financial records ordered by the court have still not been turned over
The receiver even accused the company of engaging in “fraudulent conduct.”
THE WEAVERS ARE FIGHTING BACK
Fawn Weaver and her husband Keith deny the accusations.
They argue that Uncle Nearest is actually solvent and claim the receiver is responsible for declining sales since taking over operations. They also insist that their various companies are separate entities and should not be pulled into the receivership.
But the lender strongly disagrees, saying the evidence shows serious financial mismanagement and attempts to move assets beyond its reach.
WHAT ABOUT JAY-Z?
Jay-Z himself is not accused of wrongdoing in the case.
His name has surfaced because investment partners connected to him were involved in the financing tied to the $20 million loan now being examined in court.
Still, the situation is awkward.
Uncle Nearest built its brand on honoring the legacy of Nearest Green, the formerly enslaved distiller who taught Jack Daniel how to make whiskey. The company was once celebrated as a groundbreaking Black-owned spirits success story.
Now the company is fighting for survival in court.
And the financial drama surrounding that $20 million loan is only making the situation worse.
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For Education and discussion purposes. Please note no copyright infringement is intended, was recorded on BlkCosmo’s own equipment, and we do not own nor claim to own any of the original recordings used in this video and intend to use this as ‘fair use’.
