A U.S. federal court has ordered Nigerian businessman Dozy Mmobuosi and three of his companies to pay over $250 million in fines following a fraud case.
The judgment follows an investigation by the U.S. Securities and Exchange Commission (SEC), which uncovered extensive financial irregularities within Mmobuosi’s business empire, including the fintech company Tingo Group. The court’s ruling effectively marks the end of Mmobuosi’s high-profile career in the corporate world.
Dozy Mmobuosi, who previously attracted international attention with his attempt to acquire Sheffield United Football Club, inflated the financial performance of his companies to mislead investors, leading to his conviction.
According to the SEC, his firms—including Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings—fabricated nearly all their reported financial metrics, including assets, revenues, and customer numbers.
One of the most disturbing findings was that Tingo Mobile, a subsidiary of Tingo Group, claimed to have cash reserves of $461.7 million in Nigerian bank accounts when the actual balance was less than $50.
This gross misrepresentation was a key factor in the SEC’s decision to file charges against Mmobuosi and his companies in December 2023.
The court, presided over by Judge Jesse M. Furman of the Southern District of New York, ruled that Mmobuosi and his entities failed to respond adequately to the charges, leading to a default judgment.
The ruling not only imposes financial penalties but also bars Dozy Mmobuosi from holding any directorial position in a public company, effectively ending his involvement in the corporate sector.
Read also: Tingo Founder Dozy Mmobuosi Faces Double Trouble in The U.S
A report from Hindenburg Research, which labeled Tingo Group a “blatant scam,” initially prompted the SEC’s investigation.
The report, which caused Tingo’s stock to plummet, raised serious concerns about the legitimacy of Mmobuosi’s business operations and attracted the attention of U.S. regulators.
Shortly after the report’s publication, the SEC suspended trading in the shares of Tingo Group and Agri-Fintech Holdings, citing doubts about the accuracy of publicly available information.
Despite Mmobuosi’s denials of wrongdoing and claims that the allegations were baseless, the SEC’s findings tell a different story.
The court’s final judgment includes orders for the cancellation of shares held by Mmobuosi and his companies, the disgorgement of ill-gotten gains, and a ban on Mmobuosi’s participation in the trading of any securities, further isolating him from the financial markets.
