The U.S. Department of Justice just filed charges against Tingo founder & former CEO Dozy Mmobuosi. He now faces criminal charges in conjunction with Tingo for the first time, in addition to SEC civil charges filed two weeks ago.
The founder of the financial technology company Tingo Group, Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, faces charges of securities fraud in New York. Federal prosecutors have accused him of orchestrating an extensive scheme aimed at inflating the company’s finances.
According to the allegations, Mmobuosi artificially manipulated financial statements to create a facade of Tingo and its subsidiaries being cash-rich. The indictment claims that he instructed an employee to provide false bank statements to Nasdaq in order to list Tingo Mobile shares on the exchange in 2020. Subsequently, Mmobuosi is said to have profited by selling shares at inflated prices, generating millions of dollars in the process.
“With this indictment, Mmobuosi’s alleged deceitful scheme comes to an end,” stated Southern District of New York US Attorney Damian Williams on Tuesday. Notably, Mmobuosi, who hails from Nigeria, is currently at large, adding an element of uncertainty to the unfolding legal proceedings surrounding the case.
Mmobuosi, formerly the Chief Executive Officer of Tingo, now confronts three charges, including the accusation of making false filings with the U.S. Securities and Exchange Commission (SEC). This recent indictment, issued on Tuesday, follows closely on the heels of the SEC’s legal action against Mmobuosi and Tingo Group just two weeks prior in December. The SEC lawsuit characterized the alleged fraud orchestrated by Mmobuosi, aged 45, and Tingo Group as having a “staggering” scope. The unfolding legal proceedings highlight the intensifying scrutiny surrounding Mmobuosi and Tingo, with implications for the broader financial and regulatory landscape.
The SEC’s allegations reveal a stark disparity between Tingo’s reported cash balance and actual bank records, with Tingo stating $461.7 million in March while legitimate records reflected less than $50.
In June of the previous year, Hindenburg Research, a short seller, raised concerns, asserting that Tingo was founded on fraudulent practices. This revelation triggered a substantial 48% decline in the company’s share price. Notably, Mmobuosi once considered a potential buyer for the English football club Sheffield United, is accused of utilizing his illicit profits to indulge in luxury car purchases and private jet travel, according to the SEC lawsuit. These details underscore the gravity of the alleged financial misrepresentations and the subsequent impact on Tingo’s market standing.
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