Jay-Z’s $20 Million Loan Under Scrutiny Amid Uncle Nearest Legal Battle

Uncle Nearest and its lender, Farm Credit Mid-America, are currently wrapped up in a serious legal battle. Now, according to the Lexington Herald Leader, the Fawn Weaver-owned whiskey brand is being accused of hiding money.

In court documents filed earlier this month, Farm Credit alleged that Weaver told them the $20 million was a grant from her Grant Sidney company. Farm Credit, on the other hand, insists the money allegedly came from MP-Tenn LLC, or MarcyPen Capital Partners. The venture capital firm is owned by Jay-Z and others. Farm Credit alleges that the transaction was “egregiously mischaracterized” by the Weavers.

The Weavers fired back in a recent filing. “No fraud by Grant Sidney has been alleged with the particularity required for a federal pleading,” it reads. “The assertion that Uncle Nearest engaged in fraudulent conduct relating to the MP-Tenn transaction is not correct.”

“The Weaver Parties attempt to imply (incorrectly) that FCMA was in no way misled at the time. FCMA was considerably misled,” the bank alleged.

“Whatever protestations Ms. Weaver makes now to the contrary do not change the fact that MarcyPen loaned money to Uncle Nearest, Inc., not Grant Sidney,” it also stated. “Ms. Weaver, who exercises complete control over Uncle Nearest and Grant Sidney, moved the proceeds from Uncle Nearest to Grant Sidney to make sure that $20 million coming in could not be snatched by [FCMA].”

The bank concluded, “Ms. Weaver’s own testimony shows that Grant Sidney — the largest shareholder of Uncle Nearest — whose sole stockholder is also the CEO of Uncle Nearest (Ms. Weaver) and exercises complete control of both entities, orchestrated and executed a scheme to perpetuate the violation of Uncle Nearest’s legal duty, or to commit a dishonest and unjust act in contravention of FCMA’s rights.”