Judge Says Uncle Nearest Hid $20 Million Jay-Z-Linked Loan From Lender

(Photo: Uncle Nearest)

A federal judge has expanded the court-ordered receivership overseeing Uncle Nearest Premium Whiskey after finding evidence that founder Fawn Weaver allegedly concealed a $20 million loan tied to Jay-Z’s investment firm, according to a new ruling reported on by the Lynchburg Times.

In a 62-page opinion issued Tuesday, U.S. District Judge Charles E. Atchley Jr. ordered that the receivership controlling the troubled whiskey company be expanded to include Grant Sidney Inc., a holding company the court said was used to obscure the origin of the Jay-Z-linked financing.

The ruling marks another dramatic escalation in the ongoing legal battle surrounding Uncle Nearest, once one of the fastest-growing American whiskey brands.

According to the opinion, the Tennessee distillery and related entities remain deeply insolvent, with more than $208 million in total debts. That includes more than $120 million allegedly owed to lender Farm Credit Mid-America, $45 million tied to whiskey barrel financing, more than $21 million in other liabilities and the disputed $20 million loan connected to Jay-Z’s investment company MarcyPen.

The court said the Nearest Green Distillery in Tennessee will remain under the control of receiver Phillip G. Young Jr., who was appointed after Farm Credit sued the company and the Weavers in 2025, alleging defaults on more than $100 million in loans.

Judge Says Loan Was Allegedly Hidden From Lender

The most explosive section of the ruling centers on the loan from MP-Tenn LLC, an entity tied to MarcyPen, a venture capital firm reportedly backed by Jay-Z and several business partners.

According to the court, Uncle Nearest opened a bank account specifically to receive the funds before the money was transferred into a Grant Sidney account.

Atchley wrote that Weaver moved the funds because she “did not want the funds to be ‘snatched’ by Farm Credit” during negotiations with the lender.

The court said the Weavers represented the funds as a loan from Grant Sidney rather than from an outside party.

“There’s only one reasonable conclusion,” the judge wrote, according to the Lexington Herald-Leader. “Uncle Nearest — under Fawn Weaver’s leadership — concealed its dealings with MP-Tenn from Farm Credit and misrepresented the $20 million MP-Tenn loaned Uncle Nearest as an infusion of Grant Sidney’s own funds.”

Atchley said the standard for fraudulent conduct had been met for purposes of the opinion, though he stopped short of making findings related to criminal tax violations.

Weaver has argued the structure was intended to avoid tax liability, according to the Lexington Herald-Leader.

Company Value Far Lower Than Claimed, Court Says

The judge also sharply disputed Weaver’s public valuation claims about the whiskey company.

While Weaver testified the Uncle Nearest enterprise was worth more than $300 million, Atchley said the evidence instead suggested a valuation somewhere between $50 million and $125 million.

The court additionally stated it did not find portions of Weaver’s sworn testimony credible.

Receiver Young has now been ordered to investigate whether Grant Sidney improperly holds assets belonging to Uncle Nearest or affiliated entities and report back within 60 days.

The ruling leaves open the possibility that additional companies connected to the business — including the Humble Baron venue at the distillery, billed as the “world’s longest bar” — could later be added to the receivership.

Uncle Nearest Still Fighting to Regain Control

Since the receivership was imposed in August 2025, the Weavers have fought aggressively to regain control of the company, arguing the court-appointed management damaged sales and operations.

Earlier this year, Weaver attempted to place the company into Chapter 11 bankruptcy proceedings, but the filing was dismissed after a judge ruled only the receiver currently has authority to pursue bankruptcy protection on behalf of the company.

That ruling is now under appeal.