Wednesday, March 09, 2022

Akon Accused of Running a Ponzi Scheme

Rapper Akon is currently being sued by his former business partner, Devyne Stephens, for $4 million [click here if you missed that]. 

Now Devyne is asking a judge to freeze Akon's assets and accuses the rapper of running a ponzi scheme under the guise creating a futuristic city in Senegal... 

Stephens is asking a judge to freeze all of Akon’s Big Apple assets, claiming that without the freeze he’d have difficulty collecting the debt — given Akon’s alleged history of shady practices, according to papers filed in Manhattan Supreme Court Monday.
Akon’s $6 billion project to turn an oceanfront village in Senegal into an eponymously named Wakanda-like city that would run on a cryptocurrency called “Akoin,” is one example of this, Stephen’s lawyer Jeffrey Movit alleges citing the findings of retired federal Special Agent Scot Thomasson.
Akon City and Akoin show “many of the trademark characteristics (known as ‘red flags’) of fraudulent business ventures such as Ponzi schemes and pyramid schemes,” Thomasson claims in his affidavit.
The Akon City plans “are broken promises,” Movit alleged.
“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 wrote, citing Thomasson’s affidavit.
Further, there is scant information about how the cryptocurrency would work and it’s being promoted with raffles and tokens, “which are characteristic of a multi-level marketing scheme,” the filing claims.