Amid Embezzlement Allegations, Beam Suntory Denies Any Wrongdoing, Claims 50 Cent Is Trying to ‘Pin the Blame on Beam’
Beam Suntory “vehemently denies” all allegations of wrongdoing amid accusations from the artist and spirits entrepreneur, 50 Cent. The company claims it too is a victim of fraud. (Photo: Sthanlee B. Mirador/Sipa USA)(Sipa via AP Images)
Amid allegations of involvement in a $6 million “embezzlement scheme,” Beam Suntory is denying it partook in the scheme.
The company refuted claims that it participated in or is liable in the scheme and expressed its belief that recent media coverage has conflated a lawsuit filed by Sire Spirits and arbitration with Mitchell Green, drumming up confusion and negative publicity for the spirits producer.
“Beam Suntory vehemently denies all allegations of wrongdoing,” Beam Suntory said in a statement. “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 have 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.”
In 2023, 50 Cent won a lawsuit against a former Sire Spirits employee, Mitchell Green. Green admitted to embezzling $6 million from Sire Spirits and made $2.2 million from the kickback scheme. Green pled guilty in September 2023 but could not pay Sire the money he was ordered to pay and filed for bankruptcy. Green has no connection with Beam Suntory, according to the company.
Beam Suntory claimed it was never asked to provide evidence in the initial lawsuit against Green.
According to Sire Spirits, Green had co-conspirators who profited from his kickback scheme: former Beam-Suntory employee Julious Grant and a couple, Michael Caruso and Gina Caruso.
Sire Spirits claims that Beam Suntory “held Mr. Caruso and Grant out as effective, trustworthy and competent individuals.”
According to Beam Suntory, however, the company had no knowledge of Grant’s role in this scheme and says that even Sire is not alleging that Grant participated in any “actionable misrepresentation” while he was employed by Beam.
Sire Spirits claims it initially hired Green as a consultant tasked with locating champagne for Sire’s Le Chemin du Roi brand based on the recommendation of Beam Suntory and Caruso. Sire would later hire Green as a full-time employee.
“Sire admits, Green cannot pay,” attorneys for Beam Suntory wrote in a Motion to Dismiss. “So, Sire took the story of Green’s fraud and sprinkled in some conclusory allegations aimed to pin the blame on Beam.”
Sire Spirits additionally attempts to link Caruso to Beam, but the spirits conglomerate claims Caruso was “never a Beam employee or agent.”
Beam Suntory does admit to paying Caruso to support Sire Spirits on a collaboration with Beam Suntory’s EFFEN vodka brand but argues it cannot be held liable for Caruso’s conduct.
“Subject to exceptions not relevant here, a principal cannot be held liable for the acts of a contractor who retains ‘sole responsibility and control over the manner and means’ of its performance,” Beam Suntory’s Motion to Dismiss read.
The Motion to Dismiss claimed that Beam Suntory engaged in two contracts with Caruso’s company, MCF, but neither contract gave Beam any control over Caruso’s work. According to Beam Suntory, Caruso was an independent contractor, so the agreement between Beam Suntory and MCF did not create any “principal agent or employee-employer relationship.”
Beam Suntory alleges that 50 Cent’s company requested to pay Caruso for helping promote the EFFEN Vodka brand, and Beam paid Caruso. Beam Suntory claims the money came strictly out of Sire’s budget.
“Beam never paid Caruso or his company a dime to help sell Sire’s champagne and cognac,” Beam Suntory said, noting that Caruso denied ever being paid by Beam for the development or promotion of Sire’s brands in court documents.
Grant started working with Beam in 2013 and held the title of chief U.S. commercial officer for the company from 2015 until he left in late January 2019 “in good standing,” according to the company.
Though Sire Spirits’ lawsuit alleges that Green gave the money to Grant as a part of the scheme, Grant has repeatedly denied this, according to Beam Suntory.
Beam claims that Caruso — a musical producer who has worked with the rapper Ghostface Killah — worked in a “manager-type role” for 50 Cent as part of an agreement with Beam to promote EFFEN Vodka. The brand alleges that Caruso was never employed at Beam.
The case concerning Sire Spirits is currently in the fact discovery phase, which is set to close on May 10. No trial has been scheduled yet.
News of 50 Cent’s feud with the spirits brand behind Maker’s Mark, Jim Beam and many other brands continues to hit multiple news outlets and flood the social sphere. 50 Cent has made it clear he has a beef with Beam and isn’t intending to let things go.
In an interview published Monday by Fox 5 New York, 50 Cent claimed he is “going to end up making a whole TV show” about the situation.
In an Instagram post Monday, 50 Cent tagged Beam Suntory, Maker’s Mark and Jim Beam and wrote the following
“Your gonna pay for this guys, I don’t know why you picked me for this but I’m gonna f–k you up bad.”
A Separate Scheme? Beam Claims it Too Was Defrauded
Beam Suntory claims that while it was investigating Sire Spirit’s complaint, it discovered that Grant and Caruso were involved in what it describes as a separate scheme regarding EFFEN Vodka.
The brand claims that when Beam paid Caruso, per its contract, Caruso gave some of that money to Grant, and Grant has admitted to accepting those payments, which violated Beam’s code of conduct and “breached Grant’s fiduciary duties to Beam,” according to Beam Suntory.
Beam Suntory says it was not aware of these payments during Grant’s employment. The company says it has sued Grant and Caruso over the EFFEN Vodka scheme in an attempt to recover the money that was paid to Grant. Beam Suntory claims that it, too, is a victim of fraud.
“Beam looks forward to recovering the money out of which it was defrauded,” Beam Suntory said.
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