How Farm Credit Mid-America Allegedly Enabled Uncle Nearest Fraud

Michael Senzaki, the former chief financial officer of the Uncle Nearest family of companies, was able to defraud

• Farm Credit Mid-America,
• Uncle Nearest companies, and
• steal at least part of Fawn Weaver's equity in Uncle Nearest,
• as well as money intended to pay Uncle Nearest's vendors

because Farm Credit Mid-America failed to exercise basic banking protocols. Having helped Senzaki through its "willful blindness," Farm Credit now wants its money back.

That's the gist of allegations contained in a court filing by Philip Young Jr., the court-appointed receiver in the case. Allegations aren't proof, of course, until there is a trial, but together they portray Farm Credit Mid-America as enabling Senzaki to carry on the fraud for as long as he did and explain how he was able to get as much money as he did.

Farm Credit has denied Young's allegations and says it was Uncle Nearest's oversight of its own accounting, not Farm Credit's oversight of Uncle Nearest that was consistently lacking.|

Fawn Weaver, Uncle Nearest co-founder, has argued from the beginning of the case that she and Uncle Nearest are victims of a master embezzlement scheme by her former chief financial officer, who had been with the company from its earliest days.

Here's What Uncle Nearest Says Senzaki Did

Senzaki exercised near-total control over Uncle Nearest financial system, loan compliance and credit facility interactions with Farm Credit. Uncle Nearest entered into a credit agreement with Farm Credit that included a $35 million Revolving Loan.

Senzaki inflated inventory numbers "for the purpose of inducing Farm Credit to approve multiple increases in Unclue Nearest's revolving line of credit." At no time, the receiver says, did Farm Credit discuss the increases with CDO Fawn Weaver.

Senzaki has admitted, the receiver said in the court filing, that he falsified monthly financial reports submitted to Farm Credit beginning in 2022. He also admitted he affixed Fawn Weaver's signature on multiple corporate documents without her knowledge or consent, diverted equity interests belonging to Fawn Weaver for his own benefit.

He admitted he had concealed this for years and had fabricated board minutes purporting to show that Fawn and Keith Weaver approved unauthorized loans. He used misappropriated fund to purchase his Las Vegas home, vehicles and gamble.

By August 2023, the revolving loan had grown to $66,980,000 from $35 million. Between July 22, 2022, and August 2, 2023, Senzaki submitted 28 distributon requests on the credit facility "at a pace equalk to one every two weeks, totaling nearly $67 million.

Farm credit approved each one, even though Senzaki was the only signee on all of them. "Farm Credit routinely approved loan requests without requiring the knowledge, consent of confirmation of Mrs. Weaver, the company's principal decision-maker.

"Farm Credit's conduct allowed Senzaki to exercise economic control over (Uncle Nearest) while excluding the actual owner from notice, approval or oversight," Young's counterclaim states.

After the Weavers approved funds to be paid to vendors, Senzaki exploited a loophole in the Bill.com system to change payees and amounts. Financial reports prepared by him showed Uncle Nearest's accounts payable stored at about $345,000.

After Senzaki left the company in October 2024, the receiver was appointed in August 2025, it was discovered the true accounts payable balance outstanding was "well in excess of $10 million."

Here's How Farm Credit Allegedly Aided Senzuki

Farm Credit failed to implement verification procedures "that any competent lender would employ," and Farm Credit deferred entirely to Senzaki's requests and processed loan transactions without question.

"Farm Credit's willingness to overlook obvious irregularities, including the fact Senzaki was the only signer of all 28 drawdown requests" let him "expand the credit facility by more than $30 million and to conceal the true state of the (Uncle Nearest') obligations until the fraud because impossible to hide."

It failed to obtain the basic financial documents, such as filed tax returns, audited financial statements, etc., "that would customarily be requested by any reasonable commercial lender to support a loan of this magnitude," the filing states. "A credit facility exceeding $100 million demands heightened diligence," it adds dryly.

Not once during the 13 months of drawdowns did Farm Credit contact Fawn Weaver to confirm she was aware of or had authorized these repeated drawdowns. "A single telephone call or email to Mrs. Weavere at any point during the 13 months might have exposed Senzaki's fraud." That, Uncle Nearest says, was "gross negligence and willful blindness."

It gets worse. In October 2024, Farm Credit finally had an inventory inspection completed, and it revealed material discrepancies of approximately $21 million. Even after that, Farm Credit "continued to process Senzuki's requests," the receiver's counter-claim states.

Why Didn't Farm Credit Do Basic Verification?

Young thinks he has the answer: "Each time an amendment was executed, Farm Credit collected additional fees, totaling nearly $400,000 in less than one year. These amendment and origination fees created a direct financial incentive for Farm Credit to continue processing increases and drawdowns without scrutiny. The more Mr. Senzaki borrowed, the more Farm Credit earned in fees."