Related Federal Cases
Park City Brewery Scheme: Nemeckay Indicted for $2.7M Fraud
SALT LAKE CITY – Timothy Andrew Nemeckay, 60, of Park City, Utah, is facing a five-count federal indictment alleging a brazen fraud scheme that bilked approximately 100 investors out of $2.7 million. A federal grand jury returned the indictment late Wednesday, charging Nemeckay with securities fraud, making false statements to the Security Exchange Commission (SEC), wire fraud, and money laundering.
The indictment details how Nemeckay, founder and manager of Mine Shaft Brewing, pitched a vision of a thriving brewery and restaurant, first in Park City and later in Santa Clarita, California. From early 2013 until around July 6, 2020, he allegedly collected investments ranging from $20,000 upwards, promising an 8 percent annual interest rate and a stake in what he touted would become a top craft brewer. He claimed Mine Shaft was raising $9.4 million in Series A Preferred Equity, alleging substantial commitments were already in place.
“Far too many Utah headlines report homegrown fraud schemes,” fumed U.S. Attorney John W. Huber. “There are disproportionate numbers of wolves in sheep’s clothing in our state. In this indictment, the alleged offender was even under the thumb of securities regulators when he persuaded investors to pay into his scheme, and he purportedly used investor money to pay off previously ordered restitution.” Huber urged investors to exercise extreme caution, stating, “Once again, we encourage those considering investment opportunities to do their due diligence before handing over their life savings to someone who doesn’t have their interests at heart.”
The indictment paints a picture of systematic deception. Nemeckay allegedly issued glossy “investor newsletters” to maintain the illusion of success, while diverting a staggering $1.7 million of investor funds for personal use. Less than $550,000 ever made it toward actual brewery development. Interest payments, when made at all, were allegedly funded by subsequent investments – a classic Ponzi scheme tactic. He falsely claimed to have informed the SEC about Mine Shaft’s fundraising, and that the agency had no concerns.
The most galling revelation? Nemeckay was already barred from participating in securities sales. The indictment reveals he was the subject of a 2014 administrative action by the Utah Division of Securities for selling unregistered securities, resulting in a $350,000 fine (with $313,710 offset by restitution). The order prohibited him from associating with a broker-dealer and being licensed in the securities industry in Utah. He allegedly ignored this order, continuing to solicit investments while under regulatory scrutiny.
Federal prosecutors are now aiming to hold Nemeckay accountable for the alleged $2.7 million theft. The indictment signals a full-court press to recover the stolen funds and bring justice to the victims. This case serves as a stark reminder that even in the picturesque backdrop of Park City, greed and deceit can fester, leaving a trail of financial ruin. The Grimy Times will continue to follow this case as it unfolds.
Key Facts
- State: Utah
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
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