Employees allege unpaid work as Diddy serves federal sentence

Just three months after being sentenced to 50 months in federal prison, disgraced U.S. rapper and businessman Sean “Diddy” Combs is facing fresh scrutiny over how his business affairs are being handled while he remains behind bars at the Fort Dix complex in New Jersey.

Several employees and attorneys connected to the embattled rapper and entrepreneur say they have not been paid for work performed during his incarceration, according to reports revealing that payroll payments were delayed or, in some cases, not issued at all, adding strain to an operation already dealing with legal and reputational pressure.

Third-party firm reviews Diddy expenses

The complaints, which Diddy’s representatives dispute, have led to at least one resignation, according to a report. Employees cited uncertainty over who controls spending decisions while Diddy serves his sentence. A third-party business management firm now reviews and approves expenses linked to Diddy’s companies and personal obligations.

That firm is Tri Star Sports & Entertainment, which oversees Diddy’s finances during his incarceration, the report said. Under the arrangement, invoices are submitted to Tri Star, reviewed, and either approved or rejected before payment. Several people said some invoices were denied, leaving employees and legal partners awaiting payment. The report added that members of Diddy’s family must submit expenses for review under the same process.

Those claims prompted a swift response from Diddy’s camp. Juda Engelmayer, a longtime spokesman for the music mogul, denied that Diddy has lost control of his finances or failed to meet his obligations. “People, personnel, and attorneys are all being paid, and no one is leaving,” Engelmayer said. He added that Diddy remains in charge of his financial affairs and that payments are issued once work is completed and reviewed under standard procedures.

Accountability, incarceration reshape Diddy legacy

The dispute unfolds against the backdrop of Diddy’s ongoing legal battles. In October 2025 he was sentenced to 50 months in federal prison after being convicted on two counts under the Mann Act related to transportation for prostitution. Prosecutors alleged that Diddy facilitated interstate travel connected to illegal activity, charges that carried significant prison exposure.

Diddy has already spent about 12 months in custody with pre-sentencing detention and he is expected to be released in May 2028, though that timeline could change depending on the outcome of his appeal. He is challenging both his conviction and the length of his sentence.

While he was acquitted of racketeering conspiracy and sex trafficking charges in the same case, Diddy still faces dozens of civil lawsuits accusing him of sexual abuse. Those cases remain active, adding further financial and legal pressure as questions swirl around how his business empire is being managed in his absence.