Hip Hop, film and spirits mogul 50 Cent has won a significant legal victory allowing him to seize a Westport, Connecticut property owned by his former Sire Spirits executive, Mitchell Green. Green, who once held the position of director of brand management at Sire Spirits, owes the company more than $7 million after a multi-year kickback scheme was uncovered. The scheme funneled roughly $2.2 million in illicit payments to Green. Recently, a federal court lifted the automatic stay on Green’s Chapter 7 bankruptcy, clearing the way for Sire Spirits to enforce a judgment lien on Green’s residential property at 299 Main Street, which is valued at approximately $1 million. This development illustrates how fraudulent behavior can strip debtors of their bankruptcy protections and enable creditors to take swift legal action to recoup losses.
Green’s legal troubles came to light in 2020 when an unrelated extortion attempt led him to confess the kickback scheme to federal investigators. Following the confession, Sire Spirits initiated arbitration proceedings, which resulted in an arbitrator awarding the company over $6.1 million in damages, legal fees, and interest. Additional penalties and accrued post-award interest have increased Sire Spirits’ total claim against Green to more than $6.9 million. Seeking relief from the mounting debt, Green filed for Chapter 7 bankruptcy, hoping to discharge the liabilities. However, the court ruled that, under federal bankruptcy law, debts arising from fraudulent conduct, such as Green’s kickback scheme, are non-dischargeable, leaving him responsible for repaying the full amount.
Even though the combined mortgage and liens on the Westport home already exceed its current market value, Sire Spirits has moved forward by recording a judgment lien on the property. This lien gives 50 Cent’s company legal grounds to pursue foreclosure or other collection actions under state law, underscoring the risks of fraudulent business dealings and their lasting financial consequences. The case serves as a stark reminder that bankruptcy protections have limits, especially when fraud is involved. It highlights how legal remedies can hold wrongdoers accountable in ways that protect creditors and enforce justice.