The once-celebrated whiskey brand Uncle Nearest — built on the legacy of America’s first known Black master distiller, Nearest Green — is now at the center of a federal fraud fight. And the $20 million at the heart of the latest accusations runs directly through an investment entity tied to Shawn “Jay-Z” Carter.
Court filings reveal that an investment group called MarcyPen — Carter’s venture capital firm — provided $20 million to Uncle Nearest through a convertible note agreement that was never disclosed to the company’s primary lender. The court-appointed receiver has accused founder Fawn Weaver of moving these funds into a bank account controlled solely by herself.
In sworn testimony, Weaver reportedly admitted the money was structured so it “could not be snatched” by lender Farm Credit Mid-America. The receiver argues this was an intentional effort to conceal cash collateral — a claim that could constitute fraud.
The $20 million scheme is only the latest chapter in Uncle Nearest’s financial unraveling. In August 2025, a federal judge placed the company under receivership after it defaulted on over $108 million in loans from Farm Credit Mid-America. The lender accused Uncle Nearest of inflating barrel inventory to secure additional credit, breaching loan covenants, and diverting funds, including the purchase of a $2.2 million Martha’s Vineyard property.
The findings have deepened the picture of financial chaos: nearly 500 transfers between Uncle Nearest and Weaver-controlled businesses, no federal tax returns filed since 2018, and total debts exceeding $220 million. The receiver has formally accused the company of engaging in “fraudulent conduct.”
As legal troubles escalated, Weaver publicized an aggressive marketing campaign on social media to combat critics, emphasizing brand viability. However, a stark contrast between her public declarations and court documents portrays a dire financial state, complicating her narrative.
Carter himself is not charged with wrongdoing, but the involvement of MarcyPen in a questionable transaction raises serious questions about the oversight surrounding his ventures. Amid ongoing scrutiny, these fraud allegations only amplify the scrutiny Jay-Z faces across multiple fronts, including recent ties to the Jeffrey Epstein investigation.
While Carter has yet to face charges, the $20 million fraud allegation adds to a growing dossier of inquiries into his financial practices, underscoring a potential pattern of maneuvering funds to obscure transactions.
