50 Cent won court approval to seize a Connecticut home after a man defrauded the rap star’s liquor company.
50 Cent has been granted court approval to seize a Connecticut property owned by former Sire Spirits executive Mitchell Green, who owes the Hip-Hop mogul’s liquor brand more than $7 million after a fraud conviction.
A federal bankruptcy judge lifted the automatic stay on Green’s Chapter 7 case, allowing Sire Spirits to enforce a lien on the Westport home at 299 Main Street.
The decision clears the way for foreclosure proceedings under state law.
Green, who once served as director of brand management for Sire Spirits, was found liable for orchestrating a kickback scheme involving inflated liquor prices and secret side deals with French distilleries.
According to court documents, he pocketed roughly $2.2 million in illegal payments between 2018 and 2020.
The fraud unraveled in 2020 after Green was targeted in an extortion attempt and confessed to the scheme. He was fired and later sued by Sire Spirits.
An arbitrator awarded the company more than $6.1 million in damages, legal fees and interest. With added penalties and interest, the total now exceeds $6.9 million.
Green tried to wipe the debt by filing for bankruptcy, but the court ruled the judgment was non-dischargeable due to the fraudulent nature of his actions.
That means the debt cannot be erased through bankruptcy. Sire Spirits recorded a judgment lien on Green’s Connecticut home, which is appraised at $1 million.
However, the property is underwater, with over $7 million in secured debts, including the mortgage and the Sire Spirits lien. Green has no equity in the home.
In court filings, Sire Spirits argued the house was not essential to Green’s bankruptcy case, which is a liquidation rather than a reorganization.
The company also pointed out that Green’s misconduct disqualified him from claiming the full homestead exemption, limiting his protection to $75,000.
The bankruptcy court agreed and waived the standard 14-day waiting period, giving Sire Spirits the green light to act immediately.
Green also pleaded guilty to wire fraud in federal court and awaits sentencing.
Related
