Dozy Mmobuosi, the CEO of Tingo Group, a Nigerian fintech company, has been accused by the US Securities and Exchange Commission (SEC) of orchestrating a massive fraud scheme that deceived investors and regulators.
The SEC filed a complaint on Monday in a New York federal court, alleging that Mmobuosi and three companies he controls – Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings – inflated the financial performance and business operations of their Nigerian subsidiaries, Tingo Mobile and Tingo Foods.
According to the SEC, Mmobuosi falsified financial statements and other documents, made material misrepresentations about the companies’ revenue, customer base, market share, and growth prospects, and siphoned off funds for his benefit.
“Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes,” the SEC said in a statement.
The SEC is seeking emergency relief, including freezing Mmobuosi’s assets, prohibiting the companies from transferring money or property or issuing shares to Mmobuosi, and preventing them from selling or disposing of their holdings in Agri-Fintech or Tingo Group.
Mmobuosi and the companies could not be immediately reached for comment, but Tingo Group said on its website that it would “fully cooperate” with regulators.
Tingo Group, which claims to be a profitable and fast-growing fintech and agri-fintech company, operates in Africa, Southeast Asia, and the Middle East. It offers a range of products and services, including a smartphone and platform product for farmers, a digital payment app, a food processing business, and a commodity trading platform.
The company made headlines earlier this year when Mmobuosi attempted to buy an English Premier League team, Sheffield United, for £160 million ($213 million). The deal fell through after the club’s owner, Prince Abdullah bin Mosaad bin Abdulaziz Al Saud, rejected the offer.
Tingo Group’s shares slumped in June after Hindenburg Research, a short-selling firm, published a report accusing the company of being an “obvious scam” and alleging accounting fraud, misrepresentation, and tax delinquency. Tingo Group denied the allegations and said it had hired a law firm to conduct an independent review.
The SEC imposed a two-week suspension of trading in Tingo Group’s securities on Nov. 14 following its investigations. Nasdaq advised it will continue to keep the company’s securities halted pending a review, Tingo Group said in a statement.
The SEC’s action against Mmobuosi and his companies is the latest in a series of enforcement measures taken by the US regulator against foreign-based fraudsters who target US investors. In October, the SEC charged two Chinese companies, Didi Global and Full Truck Alliance, with misleading investors about their cybersecurity risks and regulatory compliance.
The SEC’s investigation, supervised by Tejal D. Shah, is ongoing, it said in the statement.
Source: Reuters
