A multi-million dollar lawsuit has been filed against Uncle Nearest, Inc., and its founders, Fawn and Keith Weaver. The lawsuit, filed by primary lender Farm Credit Mid-America, alleges that Uncle Nearest has defaulted on over $100 million in loans and misused company funds. Uncle Nearest Whiskey is one of the best known black-owned liquor brands in the country. The suit is seeking the appointment of a receiver to take over management of the company, a move the lender says is necessary to protect its collateral and rights.
The Lawsuit Against Uncle Nearest
The lawsuit, filed in the U.S. District Court for the Eastern District of Tennessee on July 28, 2025, names Uncle Nearest, its Nearest Green Distillery, and co-founders Fawn and Keith Weaver as defendants. Farm Credit Mid-America claims the company has been in default on its loans since as early as January 2024. The lender alleges Uncle Nearest owes more than $108 million across several loans, including revolving, term, and real estate lines of credit.
The lawsuit claims that Uncle Nearest secured loans by overstating its barrel inventory values by $21 million. It further alleges that the company then sold off these whiskey barrels, which were collateral for the loans, to pay off other debts rather than repaying the lender. The brand is also accused of selling "discounted future revenue streams" without informing Farm Credit Mid-America, thus reducing the value of the lender's collateral.
Another point of contention is the purchase of a property on Martha's Vineyard. The lawsuit claims that loan proceeds were used to purchase the $2.2 million home through a separate LLC, UN HOUSE MV LLC, which then mortgaged the property to a different lender. Farm Credit Mid-America alleges this action violated the original loan agreements. The lender has requested the court to appoint a receiver, Kevin Larin, to take over managerial control of the company.
Fawn and Keith Weaver.
Uncle Nearest's Response
Uncle Nearest Premium Whiskey was founded in 2017 and was named after Nathan "Nearest" Green, America’s first black master distiller. The award-winning black-owned whiskey brand called the allegations against them "salacious and inaccurate" in an August 3 legal filing, according to Kentucky's Lexington Herald-Leader newspaper. The company is pushing back against the appointment of a receiver, arguing that the lender was aware of the circumstances that led to the technical default, a situation they say they were already working with Farm Credit Mid-America to amicably resolve.
The Weavers place much of the blame with their former chief financial officer, Michael Senzaki. In legal filings, Fawn Weaver stated under oath that Senzaki was the sole point of contact for reporting whiskey barrel inventory levels and that she and other executives were unaware of the inflated numbers, according to Tennessee's The Lynchburg Times newspaper. Uncle Nearest claims they have launched an internal investigation and are considering legal action against Senzaki, who was fired from the company in 2024.
Uncle Nearest maintains that Farm Credit Mid-America was aware of the purchase of the Martha's Vineyard property and that executives from the lending company attended an event at the home in 2023. The company’s legal filings argue that the lender "acquiesced to" the circumstances it is now claiming support a receivership. The company states it made significant payments to the lender in 2024 and 2025 and that the temporary pause in payments was mutually agreed upon during restructuring talks.
On social media, Fawn Weaver has launched an "Operation Clear the Shelves" campaign, urging consumers to buy Uncle Nearest products to demonstrate the brand's strength and success. Following the company’s legal filings, Weaver posted a defiant Instagram video, saying, “I trust the truth will now get just as much attention on social media and in the press as the intentional misleadings and hit pieces.”
Farm Credit Mid-America's Receiver Hearing, August 7, 2025
At a hearing at the U.S. District Court for the Eastern District of Tennessee on August 7th, Judge Charles Atchley Jr. heard arguments regarding Farm Credit Mid-America's request to appoint a receiver for Uncle Nearest. Nearest Green attorney Rocklan King affirmed the company had defaulted on their loans and had even discussed filing for bankruptcy but noted the Weavers were commited to repaying their loans without losing control of the brand. Keith Weaver testified, “Losing Fawn Weaver will injure the company–100%.” The Tullahoma News of Tennessee reported that, according to her husband, Mrs. Weaver was absent from the proceedings to handle business in Florida.
“It looks like you’re out over your skis,” said Judge Atchley regarding Uncle Nearest, Inc.’s financial woes, according to the Tullahoma News. In addition to their request to appoint a receiver, Farm Credit Mid-America asked for an order to protect their collateral supply of whiskey barrels and for a partial gag order following Fawn Weaver's socal media posts. Atchley agreed to an order preventing the sale of the whiskey reserves but was hesitant to issue a gag order, fearful of its First Amendment implications. The judge did not immediately rule on the request for a receiver but promised his decision would be announced in the coming days.
Judge Atchley Issues Gag Order, August 11, 2025
On the morning of August 11, 2025, Judge Atchley agreed to Farm Credit Mid-America's request for a gag order for all parites regarding their suit against Uncle Nearest, Inc. "The parties, including each of their representatives, officers, and directors, SHALL refrain from making any statement through any medium, whether oral or written, including, without limitation, social media posts or statements to the press, regarding these proceedings, the Lender’s Collateral, the proposed Receivership Assets, or any other party to these proceedings without the permission and approval of this Court until the Court has ruled on the Receiver Motion.,” directed the judge in his ruling, as per the Tullahoma News.
Judge Atchley Orders Receivership For Uncle Nearest, August 14, 2025
On August 14, 2025, Judge Atchley announced he had reached a decision. He ordered a receiver be appointed to run Uncle Nearest Premium Whiskey and its related businesses, as requested by Farm Credit Mid-America. While the decision removes Keith and Fawn Weaver from a controlling interest in the company, Farm Credit signaled it was not averse to Mrs. Weaver remaining a part of the brand in some capacity.
In his decision, Judge Atchley wrote, “the court can craft a receivership order that still allows the Weavers to market Uncle Nearest and further build the brand. By keeping the Weavers involved in this way, they could mitigate any potential brand damage that a receivership might entail,” according to the Lexington Herald-Leader.
Mediation Bid Rejected, August 21, 2025
Following Judge Atchley’s order for a receiver to be appointed, Fawn Weaver filed a response in the hopes of maintaining control over the Uncle Nearest brand. “Uncle Nearest, together with a group of high-net-worth and well-funded investors represented by Holland & Knight LLP, has made multiple, good faith attempts over the past month to pursue a commercial resolution of the claims in this case,” the response said, according to the Lexington Herald-Leader.
Farm Credit Mid-America disputed the Weavers’ version of events, arguing that the failed negotiations of the previous year had exhausted the possibility of a settlement. They also expressed alarm over Fawn Weaver’s continued social media posts referencing the ongoing court case, despite the standing gag order. Judge Atchley called Weaver’s actions "troubling," according to the Herald-Leader. In a ruling on August 21, 2025, Atchley denied Weaver's mediation request.
Uncle Nearest Receiver Appointed, August 22, 2025
On August 22, 2025, Judge Atchley appointed Tennessee attorney Phillip G. Young, Jr. as the receiver of Uncle Nearest Premium Whiskey and the Nearest Green Distillery. According to the Tullahoma News, Young, a partner at Thompson Burton, PLLC, was the preferred candidate of Fawn and Keith Weaver. In his ruling, Judge Atchley stated, “The Court chose Mr. Young based on his extensive restructuring and bankruptcy experience, including regularly serving as a receiver.”
Phillip G. Young. Photograph courtesy of Thompson Burton, PLLC.
As receiver, Young has full control over all business operations and finances for Uncle Nearest and its related entities. His primary duty is to manage and preserve the value of the company's assets for the benefit of creditors. As specifically outlined in the court order, Fawn and Keith Weaver "may continue to market Uncle Nearest products and manage the Uncle Nearest brand, subject to the receiver's supervision."
Receiver Seeks Clarity on Weavers' Assets, September 12, 2025
The Lexington Herald-Leader reported on September 16, 2025, that receiver Phillip G. Young had filed a motion with Judge Atchley, asking for “clarification” regarding assets that "appear to be somewhat related to Uncle Nearest Inc." The motion was filed after an investigation of financial records revealed a number of entities and assets that may fall under the receivership. This includes the Weavers' 2023 purchase of a French cognac distillery and their house in Martha's Vineyard, purchases that were questioned by Farm Credit Mid-America in their initial lawsuit.
The receiver's filing on September 12, 2025, indicate that Newpoint Advisors Corporation, a firm specializing in bankruptcy and corporate restructuring, has been hired as a financial consultant. Other firms have been hired to serve as an operational consultant, an alcoholic beverage counsel, and legal counsel in France and Massachusetts. The receiver expects the Weavers to argue that these assets should be outside the scope of the receivership and is therefore seeking the court's guidance on the matter.
The Weavers have yet to file a response to Young’s motion; however, Fawn Weaver remains confident of her ultimate victory in the proceedings. In a video posted to Instagram on September 16, Weaver said, “I am honored that God trusted me to do something so remarkable with the world watching and some judging,” before imploring her followers to act as grassroots sales reps: purchasing bottles of Uncle Nearest whiskey and asking liquor store owners to order more and feature it prominently on their shelves.
Receiver's Initial Report and Cost-Cutting Measures, October 1, 2025
Court-appointed receiver Phillip G. Young, Jr., filed his first quarterly report on October 1, 2025, providing a formal assessment of Uncle Nearest's financial stability under the receivership. According to the Lexington Herald-Leader, the report confirmed that Farm Credit Mid-America, the primary lender, has agreed to inject $2.5 million in short-term funding to cover overdue bills and professional fees, demonstrating an effort to stabilize the company. 12 employees have been laid off as part of the cost-cutting efforts. Young also indicated that non-income-producing properties are expected to be sold within the next quarter, with the goal of concluding the entire receivership process by mid-2026 through either refinancing the debt or selling the company.
Despite these stabilizing actions, the legal battle over the company's full scope is intensifying. According to The Tullahoma News, Farm Credit Mid-America filed a motion on September 25, 2025, supporting the receiver's request to expand the receivership to include at least 11 additional entities controlled by Fawn and Keith Weaver, arguing that the businesses have engaged in extensive financial "co-mingling."
On the public relations front, Fawn Weaver continued to discuss the ongoing litigation on social media. An Instagram post from October 1, 2025, asserts the "GAG ORDER IS OFF," despite the fact that the court's official August 11, 2025, order—which restricts public statements about the proceedings—is not shown to be formally rescinded on the court docket. In the accompanying video, Weaver addresses what she calls the "unconfirmed, unvetted headlines" regarding her actions and the company's status. She also states that bankruptcy or liquidation are "not on the table," in an attempt to reassure the market and Uncle Nearest customers of the brand's long-term viability.
Agreed Order to Stay Issued, October 29, 2025
On October 29, 2025, Judge Charles E. Atchley Jr. signed an Agreed Order Staying Proceedings, which temporarily halted the receivership from expanding its control over Fawn and Keith Weaver's ancillary businesses. These include such entities as the Humble Baron bar, Barrelhouse BBQ, and the investment company Grant Sidney Inc. According to Tennessee's Bedford County Post newspaper, while the order excludes these companies from the receivership for now, it mandates that they supply receiver Phillip G. Young, Jr. with two years of bank statements and financial documents for review. Although Young's October 1 filing confirmed the intention to sell non-core assets, including the Weaver’s Martha’s Vineyard property, and acknowledged a Chapter 11 reorganization as a possible future path, there has been no immediate, substantiated court action on either front, and reports suggesting either event is imminent remain based on media conjecture.
All other photographs courtesy of Uncle Nearest Premium Whiskey.
1 comment
I must say this was a very interesting read. I am looking forward to finding out in detail what is truly going on.