The Nigerian businessman Dozy Mmobuosi is accused by the U.S. Attorney’s Office of conspiracy, submitting false reports with the Securities and Exchange Commission (SEC), and securities fraud. The indictment was recently released. Mmobuosi could face a 45-year prison term if found guilty of all counts.
U.S. Attorney Damian Williams declared, “Mmobuosi allegedly orchestrated a massive scheme to inflate Tingo Group’s financial statements, presenting his companies as profitable and cash-rich when, in fact, they were not. With this indictment, Mmobuosi’s alleged deceitful scheme comes to an end.”
The founder of Tingo Group, the parent company of Tingo Mobile Plc and an African agri-fintech company, Mmobuosi, has suggested an IPO and a $500 million capital round for 2022. If convicted guilty of all three counts—conspiracy, securities fraud, and making false filings with the SEC—he could face a maximum sentence of 45 years in prison.
The U.S. Securities and Exchange Commission (SEC) had filed a lawsuit against Mmobuosi and his businesses, Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, alleging that they were the leaders of a “massive fraud” scheme. This was followed by the indictment.
In a Dec. 18, 2023, lawsuit, the SEC accused Mmobuosi of participating in fake transactions totaling billions of dollars since 2019, exaggerating financial data and forging assertions. A month ago, trade in Tingo Group and Agri-Fintech Holdings was suspended due to the revelation of a “staggering” extent of fraud. Concerns about the sufficiency and correctness of information that is readily available to the public were the reason for this suspension.
After Hindenburg Research announced a short position in Tingo Group in June 2023, the company’s shares fell by more than 60%. The short seller questioned Mmobuosi’s claims of creating “Nigeria’s first mobile payment app” and accused Tingo of manipulating financial statements. Established almost twenty years ago, Tingo Group was criticized after Hindenburg’s report, calling it a “very clear fraud.”
After examining Mmobuosi’s business dealings from at least 2019 to 2023, U.S. authorities discovered a plot in which he misrepresented Tingo Foods and Tingo Mobile as successful companies with hundreds of millions of dollars in revenue.
Following this, Mmobuosi transferred these businesses to American listed firms, such as Tingo Group and Agri-Fintech Holdings, which led to the latter issuing fraudulent financial statements. It is believed that he stole money from these companies and sold their shares at the right times, making millions of dollars from his scam.
