FOLLOW US

Case Details

• An arbitrator’s award and subsequent federal Bankruptcy ruling open the door for foreclosure on a Westport property owned by former Sire Spirits director Mitchell Green.
• Green’s fraud conviction for siphoning $2.2 million through kickbacks rendered his debt non-dischargeable, stripping him of full homestead protections.
• With more than $7 million in secured liens and no equity, the Connecticut home at 299 Main Street is now up for takeover under state law.

By Samuel Lopez – USA Herald

Famed rapper and entrepreneur 50 Cent (Curtis Jackson) has been granted federal court approval to seize a Westport, Connecticut property owned by his former Sire Spirits executive, Mitchell Green. Green—once director of brand management at Sire Spirits—owes the hip-hop mogul’s liquor company more than $7 million after orchestrating a multi-year kickback scheme that siphoned roughly $2.2 million in illicit payments. With the court’s decision lifting the automatic stay on Green’s Chapter 7 bankruptcy, Sire Spirits may now enforce a judgment lien on the residential property at 299 Main Street, which is appraised at approximately $1 million. Ahead of a potential foreclosure, the decision underscores how fraudulent conduct can strip debtors of bankruptcy protections and pave the way for lienholders to act swiftly under state law.

Green’s downfall began in 2020, when a separate extortion attempt led him to confess his scheme to federal investigators. After Sire Spirits initiated arbitration, an arbitrator awarded the company more than $6.1 million in damages, legal fees, and interest. Adding accrued penalties and post-award interest has increased Sire Spirits’ total claim to exceed $6.9 million. When Green filed for Chapter 7 bankruptcy to discharge the debt, the court found that, under 11 U.S.C. § 523(a)(2)(A), debts arising from fraud are non-dischargeable. Consequently, Sire Spirits recorded a judgment lien on Green’s home—despite its underwater status, where the combined mortgage and liens already exceed the property’s market value.

Background on the Fraud Scheme

Mitchell Green joined Sire Spirits in 2018 as director of brand management. According to court filings, including the arbitration award, Green secretly negotiated inflated purchase prices with French distilleries and arranged for side deals that funneled approximately $2.2 million into his own offshore accounts from 2018 through 2020. Rather than passing cost savings onto Sire Spirits, he allegedly pocketed the excess funds, disguising his actions by submitting falsified invoices and instructing suppliers to route payments through shell entities.

The scheme unraveled when Green became the target of an extortion attempt by an acquaintance who claimed to possess evidence of his misconduct. In panic, Green confessed to Sire Spirits’ counsel and federal authorities. Sire Spirits promptly terminated him, demanded restitution, and initiated arbitration. An arbitrator ruled in favor of Sire Spirits in late 2020, awarding $6,128,000 in compensatory damages for breach of fiduciary duty, plus attorneys’ fees and interest. The award’s breakdown included:

• $2.2 million(fraudulently diverted profits)
• $1 million(punitive damages)
• $1.5 million(attorneys’ fees and costs)
• $1.428 million(interest and penalties)

Once the arbitration award became final, Sire Spirits recorded a judgment in Connecticut Superior Court, which allowed it to place a lien on any real property owned by Green.

Bankruptcy Filings and Court Rulings

In an effort to halt enforcement actions, Green filed for Chapter 7 bankruptcy in the District of Connecticut in March 2024. Under 11 U.S.C. § 362, an automatic stay prevented all collection attempts—including foreclosure—while Green’s bankruptcy case was pending. However, because the arbitration judgment stemmed from Green’s admitted fraud, Sire Spirits filed an adversary proceeding to declare the debt non-dischargeable.

On May 15, 2024, the bankruptcy court ruled Green’s debt to Sire Spirits was non-dischargeable under § 523(a)(2)(A), which excepts from discharge any debt “obtained by false pretenses, a false representation, or actual fraud.” Judge Joan A. Azrack found that Green’s “willful, intentional misrepresentations” to both Sire Spirits and French distillers met the statutory standard. As a result, Green could not shed the $6.9 million obligation through bankruptcy.

Once the adversary proceeding concluded, Sire Spirits petitioned the bankruptcy court to lift the automatic stay with respect to its Connecticut home. In its motion, Sire Spirits argued:

1. Lack of Equity: The Westport property, appraised at$1 million, was encumbered by a first mortgage of $5 million and the Sire Spirits lien of $6.9 million, leaving no equity.
2. Nonessential Asset: Under11 U.S.C. § 541(b)(2), a debtor’s interest in property may be excluded from the bankruptcy estate if it is “prohibited by any applicable law.” Because fraudulent debts are non-dischargeable, Sire Spirits maintained that Green’s home should not be shielded.
3. Homestead Exemption Limit: Connecticut law permits a homestead exemption of up to$75,000 for debtors whose misconduct was the root cause of the debt. Green’s admitted fraud disqualified him from claiming the full exemption of $250,000, reducing any protection.
4. Public Policy: Allowing Green to keep the home undermines the policy that wrongdoers should not benefit from bankruptcy to escape accountability.

On May 28, 2024, Judge Azrack signed an order lifting the stay, explaining:

“Given that the debt owed to Sire Spirits is the direct result of debtor’s willful fraudulent acts, the Court finds that the property at 299 Main Street holds no equity for the estate and is not necessary for debtor’s reorganization. Accordingly, the stay is lifted, and Sire Spirits may proceed under Connecticut foreclosure law.”

Judge Azrack also waived the standard 14-day stay under Fed. R. Bankr. P. 4001(a)(3), enabling Sire Spirits to move forward immediately.

Implications for Mitchell Green

Green’s Connecticut home is underwater. With a mortgage balance of approximately $5 million and the $6.9 million Sire Spirits lien, the total encumbrances far exceed the property’s fair market value of $1 million. In practical terms, Green has no equity—meaning that any proceeds from a foreclosure sale would go to satisfy the liens in order of priority. Because Sire Spirits’ lien takes second position behind the mortgage, it stands to receive any residual funds after the mortgage is paid; however, experts estimate there will be nothing left for Sire Spirits once the mortgage is satisfied.

Still, foreclosure gives Sire Spirits the legal ability to eject Green and take possession. Under Conn. Gen. Stat. § 49-14, Sire Spirits may commence an action of strict foreclosure, which allows a lienholder to acquire title to a property if the debtor fails to pay off a debt secured by the property within a specified “redemption period.” In many Connecticut jurisdictions, this period can be as short as 30 days. Once the period expires, title vests in the lienholder as a matter of law unless the debtor pays in full.

What Comes Next

Should Sire Spirits initiate strict foreclosure, Green will likely have a limited redemption window—typically 30 days—to settle his debts. If he fails to do so, the title to 299 Main Street vests automatically in Sire Spirits or its designee. At that point, the company could choose to sell the property on the open market, even at a loss, simply to prevent Green from remaining in the home. Because the home is underwater, Sire Spirits can also pursue any deficiency judgment against Green personally under Conn. Gen. Stat. § 49-14(b), compounding his financial woes.

Green has pleaded guilty to federal wire fraud charges at the U.S. District Court for the District of Connecticut and awaits sentencing in July 2025. If convicted, he faces up to 20 years in prison under 18 U.S.C. § 1343. His criminal sentence will not reduce his obligation to Sire Spirits, and any future incarceration would make satisfying the civil judgment even more challenging.

For 50 Cent and Sire Spirits, the court’s approval to seize Mitchell Green’s home is a victory not only in recouping losses but also as a deterrent to would-be embezzlers. As Green prepares for sentencing, he also faces the grim prospect of losing his property and remaining liable for millions of dollars.

Explore More
🔗 Follow us on X @RealUSAHerald

Fact-Check Section

• Sire Spirits Corporate Overview: Visit Sire Spirits’ official website for company history and product line:Sire Spirits.