Receiver flags real estate in Uncle Nearest case

Young: company funds supported real estate beyond whiskey operations

7:29 a.m. Feb. 5, 2026

A court-appointed receiver overseeing Uncle Nearest says company funds were used to purchase or maintain several real estate properties not tied to its core operations, including the Dan Call Farm in Moore County and the Eady Road Farm in Bedford County, along with properties in Martha’s Vineyard, Mass., and Cognac, France.

The disclosure appeared in court filings submitted Tuesday, Feb. 3, in response to efforts by company leaders to terminate the receivership. The receiver, Phillip G. Young Jr., is marketing some of these properties for sale.

This issue is part of broader findings ahead of a Feb. 9 federal court hearing.

• Receiver's Response | FCMA Response | Receiver's Notice

Receiver Says the Company is Still Insolvent

Young reported that the whiskey maker still cannot meet its financial obligations without ongoing support from its primary lender and is considered insolvent under legal standards. The company owes more than $160 million, and no refinancing or purchase offer has been enough to cover its secured debt.

Operational losses have decreased during the receivership, dropping from about $1 million per month to around $350,000. However, the business still cannot support itself financially.

Young also noted that falling spirits-industry sales, unstable distributors, and reputational harm from lawsuits continue to put pressure on the company’s revenue and recovery.

Because of these issues, he concluded that the company cannot recover just by continuing to operate. Instead, it must look for refinancing or consider a possible sale to save the brand.

Fraud Probes, Missing Records Complicate Investigation

Young said that investigations into possible misconduct are still in the early stages. Progress has been slowed by unreliable or missing financial records and complaints from creditors, shareholders, and insiders.

He added that the company may have valid claims related to alleged wrongdoing by a former chief financial officer, Michael Senzaki, but more investigation is needed before any lawsuit can move forward.

Young also noted, “The Receiver believes that the Movants, in the exercise of their fiduciary duties as officers and directors of the Company, should have known of the falsity of information being distributed; but he certainly cannot state that they did know.”

Lender: Ending Receivership Could Trigger Foreclosure

Farm Credit Mid-America, the company’s secured lender, asked the court to keep the receivership in place. The lender argued that Uncle Nearest still cannot pay its loans and could shut down within about 60 days without more funding and court oversight.

The lender said it has already provided $3.8 million in additional financing during the receivership to cover payroll, vendors, and other essential costs.

Farm Credit also cited ongoing fraud investigations, weak financial controls, erased records, and claims of intercompany fund transfers as reasons to continue oversight.

CEO email added to potential hearing evidence

In a separate filing, the receiver submitted a Feb. 2 email from CEO Fawn Weaver to shareholders and employees as possible evidence for the upcoming hearing.

In the message, Weaver said neither she nor her co-founder, Keith Weaver, personally benefited from company transactions. She explained that the $20 million referenced in court filings came from selling her own shares and that all proceeds were reinvested in Uncle Nearest.

She also listed payments to show the funds were used for payroll, vendors, inventory, and debt. She stated that none of the money went to her, Keith Weaver, or related companies.

Weaver told recipients that she is still committed to protecting investors and restoring the company’s growth as the legal process continues.