The U.S. Securities and Exchange Commission (SEC) has filed charges against Nigerian accountant Olayinka Oyebola and his firm, Olayinka Oyebola & Co. (Chartered Accountants), for their involvement in a fraudulent financial scheme linked to businessman Dozy Mmobuosi.
This case follows a recent $250 million judgment against Mmobuosi and his associated companies, collectively known as the Tingo entities, for securities fraud.
The SEC’s complaint details how Oyebola and his firm were key in aiding Mmobuosi by providing fraudulent audit reports. These reports, bearing Oyebola’s signature, were used to deceive investors and regulatory authorities into believing the financial statements of the Tingo entities were legitimate.
According to the SEC, Oyebola deliberately misled the auditor of one of the Tingo entities, further helping Mmobuosi conceal the fake reports.
This multi-year scheme, which aimed to artificially inflate the financial standing of the Tingo entities, misled investors globally, with far-reaching consequences. The SEC argues that Oyebola’s actions were critical in enabling Mmobuosi and his companies to carry out this fraud by concealing vital information.
The legal action, brought before the U.S. District Court for the Southern District of New York, charges Oyebola with aiding and abetting violations of federal securities laws. The SEC seeks civil penalties and a permanent ban on Oyebola and his firm from auditing or providing financial services for U.S. public companies.
Additionally, the SEC’s complaint accuses Oyebola of facilitating Mmobuosi’s deceit, which included false representations to auditors.
Commenting on the case, Antonia M. Apps, Director of the SEC’s New York office, emphasised the gravity of the situation, stating that Oyebola’s firm betrayed the trust of the public by helping sustain a fraudulent scheme.
She further noted that regulatory authorities will take swift action against professionals who contribute to corporate fraud rather than ensuring transparency.
The investigation into the matter is ongoing, with several SEC officials involved in uncovering the full scope of the fraudulent activities. The SEC has acknowledged the cooperation of international regulatory bodies, including the Israel Securities Authority, in this case.
The fraud case against Mmobuosi has been ongoing since last December. His companies, which claimed to operate in the financial technology and agricultural sectors, were accused of fabricating significant portions of their business operations.
Mmobuosi’s businesses, which had a large customer base and substantial assets, were found to have grossly exaggerated their financial figures, misleading global investors.
Mmobuosi and his firms were accused of failing to respond to the initial civil complaint, leading to the $250 million judgment against them. His fraudulent activities have raised significant concerns about the accountability of companies operating in emerging markets and the oversight provided by regulatory authorities.
The SEC’s investigation continues as it seeks to bring to light the full extent of the misconduct and to prevent further harm to investors.
