Kentucky lender sues distillery Nearest Green. CEO says they’re victims of fraud
Another prominent distiller is in financial turmoil: Uncle Nearest and Nearest Green Distillery in Tennessee owes millions and is facing a bank takeover.
Louisville-based Farm Credit Mid-America PCA filed a federal lawsuit in U.S. District Court in the Eastern District of Tennessee on July 28, alleging that the Shelbyville, Tenn., distillery had defaulted on $100 million in loans. Uncle Nearest executives Fawn and Keith Weaver also are named in the lawsuit.
The distillery, founded in 2016, was named for Nathan “Nearest” Green, a Black distiller who taught distilling techniques to Jack Daniel, founder of Jack Daniel’s Tennessee Whiskey. Nearest Green has been a hugely successful brand, winning whiskey awards and becoming the fastest-growing Black-owned brand.
Fawn Weaver founded the Nearest Green Distillery, which makes Uncle Nearest Premium Whiskey, on a 300-acre farm in Lynchburg after learning of Nathan “Nearest” Green. She had no prior experience in distilling, but the brand has become a phenomenon.
Uncle Nearest is at least the third whiskey maker to face bank action: Garrard County Distilling in Lancaster and Luca Mariano in Danville, both in Kentucky, have also been closed following problems with their creditors. Garrard County could be sold soon to pay off its debts; Luca Mariano is seeking federal bankruptcy protection.
In the case of Uncle Nearest and Nearest Green Distillery, a hearing is scheduled Aug. 7 on Farm Credit’s motion to appoint a receiver to take over the distillery. The Weavers are opposing the move and, in an Aug. 3 filing said many of the claims against them made by Farm Credit are “salacious and inaccurate.”
Farm Credit alleges default on $100m loans
In Farm Credit’s complaint, the lender said the Weavers and the distillery had failed to adequately respond to repeated requests for information and a consensual resolution to “myriad defaults,” including failure to pay the principal and interest payments multiple times. The distillery has been in default since January 2024, according to the complaint.
Farm Credit also said the Weavers purchased a $2.2 million home on Martha’s Vineyard with proceeds from a Farm Credit distillery loan that was meant to be used as a marketing opportunity for Uncle Nearest to host brand events. But Farm Credit alleges the property was mortgaged in a separate $1.5 million loan involving another lender.
According to the complaint, the distillery provided inaccurate reports on whiskey barrels held as collateral; sold barrels to generate cash to pay past-due obligations to parties other than Farm Credit; sold millions of future receipts and revenue streams at a discount to at least four different parties on at least four separate occasions without telling Farm Credit; failed to maintain any net income each month; and failed to maintain a net worth of at least $100 million during 2024 as required by the loan documents.
The bank said Uncle Nearest “has admitted that it is in default and has consented to the appointment of a receiver” and Farm Credit filed an emergency motion requesting that appointment to “determine whether there is a path forward to a profitable business.”
Fawn Weaver says they are victims of fraud
In a post on Instagram on Sunday, Fawn Weaver rebutted the allegations and touted her company’s success over the past few years.
In the response to the lawsuit, Uncle Nearest blamed a $21 million overstatement of collateral on a now-fired chief financial officer who “engaged in fraudulent activity — conduct that is now under third-party investigation.” The response also claims that Farm Credit knew all about the Martha’s Vineyard home purchase, and that bank officers visited there in 2023 with the former CFO Mike Senzaki.
“But for the fraud perpetrated by the Defendants’ former CFO, Defendants fulfilled their monetary obligations to the Plaintiff. In other words, Defendants were, and are, victims of fraud — not perpetrators or conspirators,” the Weavers wrote.
This story was originally published August 4, 2025 at 1:37 PM.
