Payroll Provider Testifies Receiver Described Company as Cash Flow Positive and Alleges Misrepresentation of Insolvency
(Court Hearing Transcript – February 9, 2026)
Anthony Severini, Chief Financial Officer of Genesis Global Workforce Solutions — the Employer of Record responsible for payroll for Uncle Nearest since 2019 — testified under oath regarding payroll financing, cash flow representations, and communications with the Receiver.
Receiver Represented Company as Cash Flow Neutral to Positive as Late as January 2026
Mr. Severini testified that as late as early January 2026, the Receiver represented to him that Uncle Nearest was operating at cash flow neutral to positive.
He testified:
“As of January, they were cash flow neutral to cash flow positive.”
When asked whether that included receiver administrative costs, he stated that it did not, and that including those costs would place the company “slightly below cash flow neutral.”
Testified That Insolvency Characterization Contradicted Prior Representations
Mr. Severini testified that if the company were now being described as insolvent, that would be inconsistent with prior representations made to him during the receivership.
He stated:
“If he’s saying today they’re insolvent, he’s breaking that fiduciary responsibility to make sure you’ve got proper funds to pay your employees.”
He further testified that for months he had been told there was “lots of value in this company” and that vendors would be paid back.
He stated:
“When you’re intentionally lied to, in my world as a CPA, it’s called fraud, and I feel like Mr. Young committed fraud, intentionally lying to me and to my company…”
Payroll Was Not in Jeopardy Prior to Receivership
Mr. Severini testified that prior to the receivership, payroll processing was not at risk.
He stated:
“The day prior to him being receiver, that’s incorrect. We have never made that statement. That was never the case.”
He testified that Genesis Global had extended payroll financing based on a longstanding business relationship and belief in the brand’s future.
Extended Net-60 Payroll Credit Based on Confidence in Brand and Leadership
Mr. Severini testified that Genesis Global extended Net-60 credit terms to Uncle Nearest, resulting in an ongoing balance of approximately $2 million based on average monthly payroll of roughly $500,000.
He testified that such extended terms were not standard for all clients and were provided based on confidence in the company and its leadership.
Receiver Expressed Confidence in Company Value As Late as January 12, 2026
Mr. Severini testified that in early conversations following appointment, the Receiver stated he was “very bullish” on the company and believed its value exceeded its liabilities.
He testified that the Receiver indicated he expected either refinancing or sale by the end of Q1 2026 and that vendors would be made whole.
Payroll Continued During Receivership; Funding Shifted to Advance Requirement
Mr. Severini confirmed that payroll payments were made during the receivership period.
He testified that once the Receiver was appointed and the Weavers were no longer authorized to make financial commitments on behalf of the company, Genesis Global required payroll to be funded in advance.
He clarified that this change reflected the shift in authority, not a lack of belief in the company.
Declaration Submitted Under Penalty of Perjury
Prior to the hearing, Mr. Severini submitted a sworn Declaration dated January 20, 2026.
In that Declaration, he stated:
- Genesis Global has served as Employer of Record for Uncle Nearest since 2019.
- Payroll was not in jeopardy prior to receivership.
- Extended financing was provided based on the company’s growth trajectory and leadership.
- The Receiver represented that the company was cash flow positive (excluding receiver costs).
The Declaration stated it was submitted to ensure the Court had an accurate factual record regarding payroll matters