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Uncles Nearest owners say allegations made in a $100 million lawsuit filed against them by their creditor are “demonstrably false”, especially suggestions that their purchase of a $2 million estate in Martha’s Vineyard was somehow nefarious.

Uncle Nearest and Nearest Green Distillery in Shelbyville was hit with a multi-million dollar lawsuit by their creditor, Farm Credit Mid-America, PCA, claiming the company has defaulted on over $100 million in loans.

The suit, filed this past week in U.S. District Court, Eastern Division, asks that a receiver be placed over Uncle Nearest and included defendants in order to protect the collateral. It was filed by the farm creditor based out of Louisville, Ky., against Uncle Nearest Inc., based out of Shelbyville which was founded in 2016. Fawn and Keith Weaver of Uncle Nearest are also named in the lawsuit.

The suit makes claims including that the borrowers bought an estate on Martha’s Vineyard for two million dollars and that they have sold futures on their business at a discounted price. They also claim the defendants have sold off barrels of whiskey in order to pay off other debts, whiskey that it is claimed was being used as collateral. The plaintiff also maintains Uncle Nearest overestimated its value. The creditors want a receiver to be placed over the company to ensure they maintain solvency and to protect the credit association’s investment.

In light of the serious allegations made in the federal suit, our news partner, The Lynchburg Times, reached out to both Fawn and Keith Weaver on Friday. In a conversation with Keith Weaver, he described the lawsuit as “demonstrably false” and stated that they planned to file a response late Friday afternoon.

“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 stated. “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.”

He also stated that the suit felt personal because it named both him and Fawn personally.

“One of the things we take very seriously, because it’s a core principle of the company, is radical transparency. It’s also fundamental to who Keith and Fawn Weaver are personally,” he said.

He also referred to the timing of the suit as “purposeful” and its inclusion of the Martha’s Vineyard property as “interesting” considering that the company will participate in the annual Garden Party on Martha’s Vineyard in August, which he describes as an opportunity to lobby on behalf of Uncle Nearest with spirits buyers from around the country.

“It’s pretty wild,” he said. “The only thing I could say is the way it was framed in the filing, at least, whether deliberate or not, is trying to taint something. We don’t know the motives of it. But it feels, you know, it feels purposeful.”

He stated that the company continues to enjoy year-over-growth in a “tough market for the sector” and that they’ve posted double-digit growth over the past 52-weeks.

“We feel like Uncle Nearest is something that should live beyond our lifetime and we feel like it’s something worth protecting.”

Tabitha Evans Moore of the Lynchburg Times contributed to the writing of this article.