July 11, 2024
Defendant spent funds on his personal mortgage, vacations, swingers clubs, luxury items and more
Salt Lake City, Utah – Timothy Andrew Nemeckay, 64, of Park City, Utah, was sentenced yesterday to 12 months’ and one day imprisonment, and 24 months supervised release. In September 2023, Nemeckay admitted to wire fraud, which involved misappropriating approximately $1.7 million from investors investing in the development of a brewery and restaurant in Utah and California.
Nemeckay’s sentence was imposed by U.S. District Court Judge David Barlow, who also ordered Nemeckay to pay $1,705,778.00 in restitution, and the forfeiture of $308,893.53 in proceeds from the sale of his home in Park City.
According to court documents and statements made at the change of plea hearing, from early 2013 to 2020, Nemeckay lied to investors that Mine Shaft Brewing was raising funds to develop a brewery and restaurant in Park City and later in Santa Clarita, California. Nemeckay was the founder and manager of Mine Shaft Brewing. He lied to investors about what he would do with their money, and he concealed information about his background, including the fact that he was banned from raising securities statewide by the Utah State Securities Division.
Between 2014 and 2019, Nemeckay misappropriated approximately $1.7 million from 100 investors by comingling funds into his personal and business-related accounts. For example, he used investor money to pay himself, previous securities violations, personal bills and utilities, personal mortgage payments, luxury items at Louis Vuitton and Christian Louboutin, concert tickets, swingers clubs, strip clubs, and vacations to Hawaii and Cancun, Mexico.
United States Attorney Trina A. Higgins made the announcement.
The case was investigated by the Utah Division of Securities and the FBI Salt Lake City Field Office.
Assistant United States Attorneys Brian Williams and Jacob Strain from the U.S. Attorney’s Office for the District of Utah prosecuted the case.