Federal Investigation Launched Amid Expansion of Uncle Nearest Receivership
Black-owned whiskey brand Uncle Nearest’s receivership is expanding to include the company that concealed a $20 million loan from media mogul Jay-Z, according to the Lexington Herald Leader.
Judge Charles E. Atchley Jr. said that the receivership for the brand should remain and be extended to include Grant Sidney Inc., the holding company that founder Fawn Weaver used to hide a $20 million loan made last year by Jay-Z’s investment company, MarcyPen.
Jay-Z loan to Uncle Nearest
Filings state that Fawn Weaver told ARM Credit the $20 million was a loan from Grant Sidney when it actually came from another source, MP-Tenn LLC, also known as MarcyPen. MarcyPen is a venture capital firm owned by Jay-Z, Jay Brown, Larry Marcus, and Robbie Robinson, along with D’Rita Robinson.
“The Weaver Parties attempt to imply (incorrectly) that FCMA was in no way misled at the time. FCMA was considerably misled,” the bank said.
MarcyPen has also stated that Uncle Nearest is in default on the loan, as per the bank’s filing. The weavers claim that the capital went to Uncle Nearest or related vendors and are asking that Farm Credit’s allegations be “ignored, struck, and dismissed.”
Marcy Venture Partners was founded in 2018 by Jay-Z, Jay Brown (Roc Nation co-founder), and venture capitalist Larry Marcus.
Uncle Nearest under federal investigation
The whiskey brand is also apparently under federal investigation, according to a new filing by a court-appointed receiver. Lexington Herald Leader reported that in the filing, receiver Phillip Young said that he has held on to a new law firm “to advise the receiver on responding to a federal investigation.”
The filing does not specify which federal agency is involved, what type of investigation is taking place, or whether the brand itself is under investigation. Phillip Young previously told the court that Uncle Nearest had not filed federal tax returns for several years.
Image: Fawn Weaver
