The Lynchburg Times reported on Friday that Fawn and Keith Weaver, Co-Founders of Uncle Nearest, are suing the company’s former CFO, Michael Senzaki, and his company, ZMS Strategies Inc. The Weavers allege that Senzaki concealed millions of dollars in debt, which led to the company’s legal troubles in August.
News of issues involving the fastest-growing American whiskey brand made headlines that month. Farm Credit Mid-America sued Uncle Nearest for $100 million, claiming that the brand defaulted on its loans. The whiskey brand fought back against the lawsuit and claimed that it was “salacious” and “inaccurate.” The company then shared that its financial situation and legal troubles were due to the actions of a single bad actor, Senzaki.
“This suit contains a host of inaccurate claims against the company, such as the suggestion that we have not paid the bank in over a year, which is just not true,” Keith Weaver said in a statement. “They also suggest that we’re using or have used corporate resources for personal benefit in the form of the Martha’s Vineyard house, which is also not true.”
Fawn Weaver took to Instagram to set the record straight. The move seemed fairly on-brand for “The People’s CEO,” as Weaver has a robust social presence.
“Let our distributors and partners know: Uncle Nearest is stronger than ever,” Weaver shared.
A few days later, a Federal Judge issued a gag order to prevent Fawn Weaver from posting on her socials. After he acknowledged that he may potentially be violating Weaver’s First Amendment rights, he shared that he did not want the case to be “tried in the media.” To add further insult to injury, the judge ordered a freeze on the movements of assets. He additionally appointed a receiver to run the brand.
The Weavers Attempt to Set The Record Straight
For the most recent lawsuit, the Weavers claim that Senzaki abused his position within the company to commit fraud. They allege the former CFO transferred Weaver’s personal equity without informing her. Senazki had full control over Uncle Nearest’s finances, according to the Weavers, and they claimed he provided a false financial picture of growth when there were liabilities.
Fawn and Keith Weaver claim that Senzaki’s actions led to severe personal harm. Fawn Weaver claims that she took “little to no cash salary,” as she built the brand and that she would never sell equity for “personal benefit.”
The lawsuit alleges that Senzaki and ZMS Strategies Inc. made a “coordinated effort” to make the Weavers appear responsible for the brand’s corporate debt. Such an effort led to Fawn Weaver having to cancel speaking engagements, which led to losses of over $1 million. Fawn’s husband, Keith Weaver, had almost $9.75 million frozen in funding for other businesses.
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