On Wednesday Park City resident 64-year-old Timothy Nemeckay [Nem A Kay] was sentenced to a year in prison and two years of supervised release for defrauding 100 investors of about $1.7 million.
U.S. District Court Judge David Barlow ordered Nemeckay to pay that $1.7 million in restitution and forfeit more than $300,000 from the sale of his Bear Hollow home.
Court documents state Nemeckay lied about raising funds for his Mine Shaft Brewing concept, a restaurant and brewery he wanted to build in Park City and then later in Santa Clarita, California. Between 2014 and 2019, he used the money to pay for previous securities violations, personal bills, luxury items at Louis Vuitton, concert tickets, swingers clubs, strip clubs and vacations to Hawaii and Cancun.
Nemeckay accepted a plea deal, which dropped securities fraud and money laundering charges. He pleaded guilty to one count of wire fraud.
Nemeckay confessed in a sworn statement that he “obtained money by means of materially false and fraudulent representations and promises, and omissions of material facts.”
“Mine Shaft will be a 20,000-square-foot facility with a 10,000-square-foot brewery with a restaurant and event space,” Nemeckay said in a 2014 promotional video about the company's plans for Kimball Junction. “Mine Shaft Brewery is poised to become one of the top 50 brewers in the next five to six years. Sounds ambitious, doesn’t it?”
The Utah Division of Securities and the FBI’s Salt Lake City Office led the investigation into Nemeckay, who was already banned from soliciting investments.
Court documents say Nemeckay previously assisted a former business partner to defraud investors for an energy drink startup. Nemeckay was never charged, but was barred from selling securities in Utah.
