The turmoil surrounding one of the fastest-growing American
whiskey brands has hit a new low. In the long-running case over an alleged multimillion-dollar fraud, the founders of Nearest Green Distillery have now been removed from their own distillery.
The scandal around Nearest Green Distillery has largely flown under the radar, but it’s still unfolding and it’s just taken another turn. Fawn and Keith Weaver, founders of
Nearest Green Distillery, have been ousted from their own company.
Founders barred from entering their own distillery
Philip G. Young Jr., the court-appointed receiver overseeing the case, has not only terminated the roles of Fawn and Keith Weaver. He has also revoked their access to company facilities, including the U.S. distillery, along with all digital systems and other corporate assets.
According to the July 10 report, the founders’ presence created confusion among employees and suppliers. Since their removal, day-to-day operations are said to be running more smoothly.
The whiskey makers may also face legal trouble
While the Weavers no longer have any say over the distillery, the drama may not end there. The report also states that a forensic investigation is underway into their actions, as well as those of “other involved parties.”
Depending on the findings, legal action may follow. The specifics remain unclear.
What exactly happened in this American whiskey saga?
Problems at Nearest Green Distillery have been brewing for quite some time. They visibly escalated when lender Farm Credit Mid-America filed a lawsuit over loans exceeding 100 million dollars. Read more about that here.
The Weavers, in turn, pointed to former CFO Michael Senzaki. They accused him of, among other things, manipulating invoices, hiding liabilities, and funneling payments to companies he allegedly controlled.
An investigation by the receiver then uncovered far more debt than expected, reportedly tens of millions of dollars more. Court documents also revealed a 20 million loan linked to MarcyPen, and by extension, Jay-Z.
A property on Martha’s Vineyard also became part of the legal fray and was sold for a massive sum. The Weavers were unhappy with the sale and unsuccessfully tried to regain control of the company through a Chapter 11 filing.
What’s next for Nearest Green Distillery?
With the Weavers now sidelined, the future of the whiskey distillery remains uncertain. A sale appears likely.
The receiver has signed a letter of intent for the potential sale of nearly all business operations and assets. The identity of the prospective buyer has not been disclosed.
FAQ
- Why were Fawn and Keith Weaver removed from Nearest Green Distillery?
The receiver ended their involvement because, according to the court report, their presence created confusion among employees and suppliers. - Are the founders allowed to enter the distillery?
No. Their access to company buildings, digital systems, and other corporate assets has been revoked. - What happens now to Nearest Green Distillery?
A sale appears possible. The receiver has signed a letter of intent for the potential sale of nearly all business operations and assets.