Akon Accused of Running ‘Ponzi Schemes’

Akon’s former business partner, music executive Devyne Stephens is accusing the rapper-turned-investor of attempting to run a Ponzi scheme through his proposed “Akon city” idea in Senegal. Stephens, who launched a lawsuit against Akon in 2021 for $4 million, is asking a judge to freeze Akon’s New York assets, alleging that without the pause, he’ll have trouble collecting his money from the singer. 

According to the legal documents obtained by Page Six, Stephens’ attorney Jeffrey Movit points to the investigative conclusion of retired federal Special Agent Scot Thomasson who researched Akon’s $6 billion plans to turn a Senegal village into city that operates off of his own cryptocurrency “Akoin.” 

Thomasson claimed in his affidavit that Akon City and Akoin exhibited “many of the trademark characteristics (known as ‘red flags’) of fraudulent business ventures such as Ponzi schemes and pyramid schemes.” Movit is claiming that Akon’s city and cryptocurrency plans “are broken promises.” 

“Akon has provided almost no transparency about who is investing in Akon City or how it will be purportedly built. Therefore, Akon City is likely a scam,” Movit writes in the filing to a Manhattan judge. The filing also points out the lack of evidence proving that a cryptocurrency could be successful at the level which he plans, but it’s being offered to people through raffles and tickets “which are characteristic of a multi-level marketing scheme,” the filing asserts.

Aside from Stephens, Akon is also in debt with the IRS who claims the rapper owes the government $6 million in taxes. The IRS placed liens on his real estate. The rapper recently boasted that he was getting paid with trash bags full of money for his shows in Africa, however it “does not appear to be using this African cash to re-pay his debts to the IRS,” Movit wrote. “And he certainly is not using this cash to fulfill his contractual debts to plaintiffs which are the subject of this lawsuit,” the attorney continues.

A representative for Akon released a statement: “Mr. Stephens’ allegations about Akon City and Akon’s business ventures are not based on any evidence.”

“They are nothing but innuendo and speculation, made by someone who had a claim against Akon dismissed,” the rep said, referring to a previous claim in another version of Stephens’ lawsuit. “Akon is proud of the efforts he is undertaking to create opportunities for his homeland in Senegal,” the statement closed.