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Uncle Nearest and its financial backer Farm Credit Mid America are currently involved in a major legal dispute. According to reporting from the Lexington Herald Leader, the whiskey company founded by Fawn Weaver is now facing accusations that it concealed financial assets.
Legal paperwork submitted earlier this month claims that Weaver told Farm Credit the 20 million dollars came from her company Grant Sidney as a grant. However, Farm Credit argues the funding actually came from MP Tenn LLC, also known as MarcyPen Capital Partners. This investment firm is connected to Jay Z and other partners. The lender claims the details of the transaction were seriously misrepresented by the Weavers.
In response, the Weavers challenged those claims in a recent court filing. “No fraud by Grant Sidney has been alleged with the particularity required for a federal pleading," it reads. "The assertion that Uncle Nearest engaged in fraudulent conduct relating to the MP-Tenn transaction is not correct."
Uncle Nearest Legal Battle
"The Weaver Parties attempt to imply (incorrectly) that FCMA was in no way misled at the time. FCMA was considerably misled,” the bank alleged.
“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,” it also stated. “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 dollars coming in could not be snatched by [FCMA].”
The lender further stated, “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.”
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