Akon’s former business partner compares Singer’s sci-fi town plans to Ponzi scheme in ongoing lawsuit

Akon’s former business partner says the singer’s plans to build a futuristic city in Senegal amount to a Ponzi scheme and is asking a judge to freeze his assets in their ongoing $4million lawsuit of dollars.

via Complex:

Devyne Stephens – a music executive who has worked with musicians including Jay-Z, Destiny’s Child, Usher and Pink – sued Akon in 2021 for nearly $4 million he still owed his former partner from a settlement previous court.

Now Stephens is asking a judge to freeze all of Akon’s assets in the Big Apple, saying without the freeze he would have a hard time collecting the debt – given Akon’s alleged history of shady practices, according to documents filed Monday in Manhattan Supreme Court.

Akon’s $6 billion project to turn a seaside village in Senegal into an eponymous Wakanda-like town that would run on a cryptocurrency called “Akoin,” is one such example, according to the lawyer for Stephen, Jeffrey Movit, citing the findings of retired Federal Special Agent Scot Thomasson.

Akon City and Akoin show “many trademark characteristics (known as ‘red flags’) of fraudulent business ventures such as Ponzi schemes and pyramid schemes,” Thomasson asserts in his affidavit.

The Akon City plans “are broken promises,” Movit said.

“Akon has provided almost no transparency on who is investing in Akon City or how it will allegedly be built. Therefore, Akon City is likely a scam,” Movit wrote, citing Thomasson’s affidavit.

Additionally, there is little information about how the cryptocurrency works and it is promoted with raffles and tokens, “which are characteristic of a multi-level marketing system,” the filing claims.

Stephens isn’t the only one struggling to recover money from Akon – who has a hefty unpaid tax bill, according to court documents. In fact, the IRS placed liens on Akon’s real estate because he owes more than $6 million in taxes, according to the filing.

And although Akon allegedly bragged in an interview about being paid in garbage bags full of cash for his performances in Africa, he “doesn’t seem to be using that African money to pay off his debts to the IRS.” , Movit wrote.

“And he is certainly not using this money to honor his contractual debts to the plaintiffs who are the subject of this lawsuit,” the court documents allege.

Akon’s rep said, “Mr. Stephens’ allegations regarding Akon City and Akon’s business ventures are not based on any evidence.

“It’s just innuendo and speculation, made by someone who had a claim against Akon dismissed,” the rep said, referring to a claim in the previous version of Stephens’ lawsuit that a judge dismissed. .

“Akon is proud of the efforts he is undertaking to create opportunities for his homeland in Senegal,” the statement concluded.

Movit declined to comment.

We don’t know which side we’re on, but we do know Akon’s city plans are pretty cool.

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