50 Cent's Sire Spirits: Multi-million dollar embezzlement scheme threatens brand
A FOX 5 investigation revealed a shocking multi-million dollar embezzlement scheme that nearly shut down 50 Cent's Sire Spirits brand. He never gave up and is fighting back in court.
50 Cent's Branson cognac and Le Chemin du Roi champagne are so popular, that crowds line up hours in advance to buy bottles at signing events from coast to coast.
50 Cent personally takes pictures with his fans, no matter how long it takes. The author of the book, "For The Culture," marketing professor Dr. Marcus Collins says it's a secret of his unprecedented success.
There was no love for 50 from those accused in a 70-page New York State Supreme Court Complaint brought by Sire Spirits against Beam Suntory and others, including Julious Grant and Michael Caruso. It alleges the defendants embezzled millions of dollars from Sire Spirits by overcharging, then split the difference, which is estimated at more than $6 million.
FOX 5 NY's Lisa Evers spoke exclusively with Sire Spirits attorney Craig Weiner, litigation partner at Blank Rome.
"Because these illicit commissions were baked into the price of the product, Sire Spirits overpaid on taxes, overpaid on customs and duties, overpaid on insurance, which are marked towards the value of the product," Weiner said.
The lawsuit accuses international multi-billion dollar spirits company Beam Suntory with being complicit in the kickback scheme. Attorney Craig Weiner said:
"Beam Suntory's role here is extraordinarily troubling. Beam Suntory's Chief Commercial Officer, a gentleman by the name of Julious Grant, acting as an employee, as an officer of the company, acting under the actual and parent authority of Beam Suntory facilitated the entire fraud as we plead in our complaint."
FOX 5 asked for an interview with Beam Suntory, but instead they sent us this statement in response:
"Beam Suntory vehemently denies all allegations of wrongdoing. It had no involvement in or knowledge of the fraudulent activity alleged in the complaint, and any allegation to the contrary has no basis in fact. It is undisputed that we honored all prior obligations to Mr. Jackson and Sire Spirits, and it is very unfortunate that the parties involved continue to misrepresent the facts and misdirect blame in an attempt to recover fees and damages."
"I question where was your compliance program? How did they get away with Mr. Grant receiving payments under the scheme for years and years. Where were you? How did you allow this to happen? This is a heavily regulated industry," Attorney Weiner said.
In a related case, one of the alleged co-conspirators, Mitchell Green, has already pleaded guilty to a federal charge of wire fraud.
Sources say Mitchell Green is cooperating with federal authorities. He's expected to be sentenced by a federal judge this spring.
The NY State Supreme Court case is currently in depositions and is expected to go before a jury early next year.