*Uncle Nearest Premium Whiskey is facing a new level of legal scrutiny as federal agencies examine possible wrongdoing connected to the company’s finances.
A report submitted by the court-appointed receiver shows that records were turned over to the U.S. Securities and Exchange Commission and federal prosecutors in New York. The filing indicates the agencies are pursuing separate inquiries, but it does not explain what conduct they are reviewing, the New York Times reports.
The court report also confirms that founder Fawn Weaver and her husband, former CEO Keith Weaver, no longer work for the company. They remained employeed after losing control of daily operations when the court installed a receiver last August.
Receiver Phillip Young reported improvements in the company’s daily management since their removal.
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The latest developments follow months of disclosures about Uncle Nearest’s financial condition. The Tennessee whiskey producer entered receivership after failing to repay more than $100 million borrowed from Farm Credit Mid-America.
Court proceedings later raised questions about unpaid taxes, creditor claims and a $20 million loan involving MarcyPen, a venture capital firm partly owned by Jay-Z. Fawn Weaver testified in February that the company did not initially disclose that loan to creditors.
Other filings allege Uncle Nearest failed to maintain a complete list of its investors. The business also reportedly owes federal income taxes dating back to 2018. The company’s total obligations to lenders, vendors and other creditors may reach $200 million, according to court records.
The financial collapse represents a dramatic turn for a brand that once promoted a reported valuation of $1 billion. Founded in 2017, Uncle Nearest built its identity around Nathan “Nearest” Green, the first known African-American master distiller credited with teaching Jack Daniel whiskey production.
The company later became a nationally recognized spirits brand and a high-profile example of Black ownership within the whiskey industry. Federal investigators are now examining its operations as the receiver works to stabilize the business.
MORE NEWS ON EURWEB.COM: Uncle Nearest Whiskey Faces Receivership, but CEO Fawn Weaver Stands Resolute
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