50 Cent could be nearly $7 million richer now that former Sire Spirits employee, Mitchell Green, who had embezzled money from the company, defaulted on his bankruptcy filing.
As AllHipHop.com reported in an exclusive story, Sire Spirits LLC filed a complaint against Green on June 2, arguing that bankruptcy protection shouldn’t cover money obtained through illegal means.
Despite being served with the summons and complaint, Green failed to respond within 30 days, leading to a default being entered against him.
Green, who had been a part of the brand management team at 50 Cent’s company, Sire Spirits, had been ordered to pay more than $6 million after he was discovered to have embezzled funds.
Green held a crucial position at Sire Spirits, acting as the principal liaison with the company’s French suppliers. However, he betrayed the company’s trust by colluding with these suppliers, artificially inflating the amount Sire Spirits paid and funneling the excess fees to himself and his co-conspirators.
According to 50 Cent’s lawyer, James Berman, Green was paid a six-figure salary and benefits as an employee. But his own greed led him to steal millions of dollars in “agency fees” he negotiated under the table.
After years of fraudulent activity, Green confessed to his misdeeds when he claimed he was being extorted by a co-conspirator. Sire Spirits took legal action and an arbitration proceeding found Green liable for breach of fiduciary duty, fraud and unjust enrichment, leading to a judgment of $6,194,293.
Despite Green’s attempts to file for bankruptcy to avoid paying the judgment, 50 Cent fought against it, arguing that bankruptcy protection doesn’t cover money obtained by “fraud or defalcation while acting in a fiduciary capacity, embezzlement, or larceny.”
Green never bothered to reply, clearing the way for 50 Cent’s latest legal victory in the battle to recover millions from Green. 50 Cent has vowed to take Green’s assets.
The rap star and TV producer even contemplated the changes he would make to Green’s home, suggesting he would keep the family pictures as a theme for the place.