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The United States Securities and Exchange Commission (SEC) has taken legal action against Dozy Mmobuosi, the Chief Executive Officer of Tingo Mobile, accusing him of engaging in massive fraud. The charges also extend to three affiliated U.S.-based companies under Mmobuosi’s control: Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.
In a filing dated December 18, 2023, the SEC alleges that Mmobuosi orchestrated a multi-year scheme to inflate the financial performance metrics of the mentioned companies and their Nigerian operating subsidiaries. The purpose of the scheme was purportedly to defraud investors globally.
The SEC is urgently seeking relief to halt the dissemination of materially false information to investors and safeguard corporate and investor assets.
Key Allegations made by SEC:
The SEC’s complaint, filed on December 18, 2023, contends that since at least 2019, Mmobuosi has been involved in fabricating financial statements and other documents for the three entities and their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC.
The complaint further asserts that Mmobuosi and the entities under his control made material misrepresentations about their business operations and financial success in press releases, SEC filings, and other public statements.
For instance, the SEC highlights discrepancies in Tingo Group’s fiscal year 2022 Form 10-K, where it reported a cash balance of $461.7 million in Tingo Mobile’s Nigerian bank accounts. The SEC alleges that, in reality, these bank accounts had a combined balance of less than $50 by the end of fiscal year 2022.
The complaint also claims that Mmobuosi and the entities fraudulently obtained hundreds of millions in money or property through these schemes. Mmobuosi is accused of diverting funds for personal use, including purchases of luxury cars, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.
The SEC’s legal action:
The SEC’s legal action, filed in the U.S. District Court for the Southern District of New York, charges all four Defendants with violating federal securities laws’ anti-fraud provisions. Additionally, Nasdaq-listed Tingo Group, OTC-traded Agri-Fintech, and Mmobuosi face charges related to reporting, books and records, and internal controls violations.
Specific charges against Mmobuosi include lying to auditors, insider trading, and failure to file Forms 4 disclosing the sales of millions of Agri-Fintech common stock for which he was the ultimate beneficial owner.
The SEC is seeking various remedies, including permanent injunctive relief, disgorgement of ill-gotten gains, civil penalties, and the return of bonuses and profits obtained by Mmobuosi from stock sales.
As part of the SEC’s emergency application, they seek temporary restraining orders against the Defendants, including freezing Mmobuosi’s assets, prohibiting money or property transfers to him, enjoining the sale of stock holdings, and preventing the destruction or alteration of records.
The ongoing SEC investigation is being conducted by a team from the New York Regional Office, and the litigation is led by experienced SEC personnel. The SEC acknowledges the assistance of Nasdaq’s Enforcement Department in this matter.
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