Billionaire Dozy Mmobuosi.
The United States Securities and Exchange Commission (SEC) has accused Tingo Group Inc. of falsely claiming to have $461.7 million in its Nigerian subsidiary Tingo Mobile’s bank accounts, when, in reality, the accounts held only $50.
SEC made this announcement on Monday, revealing charges against Mmobuosi Banye, also known as Dozy Mmobuosi, and three affiliated US-based entities he leads as the Chief Executive Officer—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.
The commission alleges that Mmobuosi is involved in a multi-year scheme to exaggerate the financial performance metrics of his companies and key subsidiaries, deceiving investors worldwide. SEC is seeking urgent measures to halt the defendants’ dissemination of false information to investors and safeguard corporate and investor assets.
In a statement, SEC said, “The SEC’s complaint, filed on December 18, 2023, alleges that, since at least 2019, Mmobuosi spearheaded a scheme to fabricate financial statements and other documents of the three entities and their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC. The complaint further alleges that Mmobuosi made and caused the entities to make material misrepresentations about their business operations and financial success in press releases, periodic SEC filings, and other public statements.
“For instance, Tingo Group’s fiscal year 2022 Form 10-K filed in March 2023 reported a cash and cash equivalent balance of $461.7m in its subsidiary Tingo Mobile’s Nigerian bank accounts.
In reality, those same bank accounts allegedly had a combined balance of less than $50 as of the end of fiscal year 2022. According to the SEC’s complaint, Defendants also fabricated the customer relationships that formed the basis of their purported businesses.
“The complaint alleges that Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes, and that Mmobuosi has siphoned off funds for his personal benefit, including purchases of luxury cars and travel on private jets, as well as an unsuccessful attempt to acquire an English Football Club Premier League team, among other things.”
SEC has filed its case in the U.S. District Court for the Southern District of New York, charging the four defendants with violating the anti-fraud provisions of federal securities laws.
Additionally, the commission specified that Mmobuosi is accused of lying to auditors, engaging in insider trading, and neglecting to submit Forms 4 disclosing the sales of millions of Agri-Fintech common stock, of which he was the ultimate beneficial owner.