The United States Securities and Exchange Commission (SEC) has initiated legal proceedings against Dozy Mmobuosi, the Chief Executive Officer of Tingo Mobile, and three affiliated U.S.-based companies—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc. The SEC alleges a significant fraud scheme orchestrated by Mmobuosi, involving the inflation of financial performance metrics to deceive global investors.
According to a filing dated December 18, 2023, which was obtained by Techmoonshot on the SEC official website, the SEC accuses Mmobuosi of leading a multi-year scheme designed to fabricate financial statements and documents for the mentioned entities and their Nigerian subsidiaries—Tingo Mobile Limited and Tingo Foods PLC. The complaint asserts that these falsified documents were utilized to mislead investors through press releases, SEC filings, and other public statements.
The SEC’s complaint specifically underscores instances of substantial misrepresentations in financial reports, further emphasizing the severity of the alleged misconduct.
“For example, Tingo Group’s Form 10-K for fiscal year 2022, filed in March 2023, claimed a cash and cash equivalent balance of $461.7 million in Tingo Mobile’s Nigerian bank accounts. However, the SEC contends that, in reality, the combined balance of these same bank accounts was allegedly less than $50 at the close of fiscal year 2022. The SEC’s complaint asserts that the Defendants further engaged in the fabrication of customer relationships, which served as the foundation for their purported businesses.”
including extravagant expenditures such as luxury cars, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.
SEC Filing
“The allegations extend to the deceptive creation of customer relationships that formed the core of their claimed enterprises. Additionally, it is asserted that Mmobuosi and the entities under his control acquired substantial amounts of money or property through these fraudulent schemes. Mmobuosi stands accused of diverting funds for personal use, including extravagant expenditures such as luxury cars, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.”
The SEC’s complaint, lodged in the U.S. District Court for the Southern District of New York, accuses all four Defendants of violating anti-fraud provisions under federal securities laws. The charges extend to reporting, books and records, as well as internal control violations specifically against Nasdaq-listed Tingo Group, OTC-traded Agri-Fintech, and Mmobuosi. Additionally, Mmobuosi is confronted with allegations of deceiving auditors, engaging in insider trading, and neglecting to disclose millions in common stock sales within Agri-Fintech.
The SEC is pursuing various forms of redress, including permanent injunctive measures, the disgorgement of illicit gains, civil penalties, and the restitution of profits derived from stock sales. Additionally, it seeks to prohibit Mmobuosi from holding positions in public companies or participating in penny stock offerings.
Through an emergency application, the SEC is requesting immediate and preliminary relief, which encompasses freezing Mmobuosi’s assets, prohibiting money transfers or share issuances to Mmobuosi from TIH, Agri-Fintech, and Tingo Group, and preventing the disposal of stock holdings. The order also aims to secure records, documents, and the repatriation of proceeds pending further legal proceedings.
The SEC’s investigation, led by key individuals and facilitated by a team from the New York Regional Office, acknowledges the support of Nasdaq’s Enforcement Department in addressing this matter.
