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: