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.

The judgement follows an investigation by the US Securities and Exchange Commission (SEC), which uncovered a wide range of financial irregularities within Mmobuosi’s business empire, including the fintech company Tingo Group. 

The court’s ruling marks the end of Mmobuosi’s high-profile career in the corporate world.

Dozy Mmobuosi, who once attracted international attention with his attempt to acquire Sheffield United Football Club, was found guilty of inflating the financial performance of his companies to mislead investors. 

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 the revelation that Tingo Mobile, a subsidiary of Tingo Group, claimed to have cash reserves of $461.7 million in Nigerian bank accounts, when in fact, 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 had failed to respond adequately to the charges, leading to a default judgment. 

The ruling goes beyond imposing financial penalties and bars Dozy Mmobuosi from holding any directorial position in a public company, effectively ending his involvement in the corporate sector.

The SEC’s investigation was initially prompted by a report from Hindenburg Research, which labelled Tingo Group as a “blatant scam.” 

The report, which caused Tingo’s stock to plummet, raised serious problems about the legitimacy of Mmobuosi’s business operations and attracted the attention of US 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 reveal something different. 

The court’s final judgment includes orders for the cancellation of shares held by Mmobuosi and his companies and the disgorgement of ill-gotten gains. The penalties also include a ban on Mmobuosi’s participation in the trading of any securities, further isolating him from the financial markets.

The issue, impacting at least 50 Tingo employees, came into effect in March 2024 after a period of three months where employees weren’t paid their salaries.

In January, CEO Dozy Mmobuosi assured employees in a company-wide call that salaries would be settled within four weeks and appealed for their continued service.

These assurances came despite the Securities and Exchange Commission (SEC) filing charges against Tingo in December 2023 for allegedly fabricating its financial statements.

The SEC investigation revealed a discrepancy between Tingo’s reported financials and reality. While the company claimed to have cash reserves exceeding $461 million, its bank accounts held less than $50 million.

Adding to the confusion, some employees received pay raises just weeks after the SEC charges were filed. These raises ranged from 200% to 400%, according to a company executive.

In March, noting “present realities and uncertainties ahead,” Tingo informed staff via email that they would be sent home temporarily until the company could resume salary payments. 

A high-ranking executive, speaking on condition of anonymity, confirmed the furloughs as a necessary step due to the company’s financial struggles. He elaborated that frozen assets and unpaid debts from vendors further exacerbated the situation.

Tingo Group has not responded to requests for comment regarding the unpaid salaries but instead invited media to a product launch event for its subsidiary, Tingo Foods. This upcoming launch of new beverages has left former employees questioning the company’s priorities.

This incident is the second round of staff reductions for Tingo in 2024. In February, approximately 40 contract workers were abruptly let go without receiving payment for services rendered.

This complaint implicates Mr. Mmobuosi alongside three other corporate entities – Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.

In an official statement from Dozy Mmobuosi regarding the SEC civil complaint, Mr. Mmobuosi said unequivocally clear that these allegations are baseless and he will contest them with unwavering resolve.

“As this matter is currently under legal scrutiny, and following the advice of legal counsel, Mr. Mmobuosi will refrain from making any further public statements regarding this issue”.

“It is Mr. Mmobuosi’s intention to address and resolve these allegations within the appropriate legal framework. He is committed to cooperating with the legal process to ensure a thorough and fair examination of the facts, which he believes will ultimately lead to his exoneration.

“We appreciate the understanding of the media and the public during this time and request respect for the legal process and the principles of justice”, the statement reads.

Background

The charges stem from an alleged multi-year scheme, spearheaded by Mmobuosi, to inflate financial performance metrics and fabricate documents for Tingo Group and its subsidiaries, Tingo Mobile and Tingo Foods PLC.

The SEC’s complaint, filed on December 18, 2023, outlines a series of grave allegations against Mmobuosi, accusing him of orchestrating a scheme since at least 2019 to deceive investors worldwide.

The charges stem from an alleged multi-year scheme, spearheaded by Mmobuosi, to inflate financial performance metrics and fabricate documents for Tingo Group and its subsidiaries, Tingo Mobile and Tingo Foods PLC.

The SEC’s complaint, filed on December 18, 2023, outlines a series of grave allegations against Mmobuosi, accusing him of orchestrating a scheme since at least 2019 to deceive investors worldwide. 

The complaint asserts that Mmobuosi fabricated financial statements and misled investors through press releases, SEC filings, and public statements. Notably, Tingo Group’s 2022 Form 10-K, filed in March 2023, reported a substantial cash balance in its Nigerian subsidiary’s bank accounts, while in reality, those accounts allegedly held less than $50 at the end of fiscal year 2022.

Furthermore, the SEC claims that Mmobuosi and the entities under his control fraudulently obtained hundreds of millions through these deceptive practices. Allegedly, Mmobuosi diverted funds for personal gain, including luxury purchases, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.

The SEC’s charges include violations of anti-fraud provisions, reporting, books and records, and internal controls violations. Mmobuosi faces additional charges of lying to auditors, insider trading, and failure to disclose the sale of millions of Agri-Fintech common stock. The SEC seeks injunctive relief, disgorgement of ill-gotten gains, civil penalties, and the return of bonuses and profits obtained by Mmobuosi.

As part of the SEC’s emergency application, temporary and preliminary relief is sought, including a restraining order freezing Mmobuosi’s assets and prohibiting money or property transfers. The SEC also aims to prevent the destruction of records, enjoin the sale of stock holdings, and order a repatriation of proceeds with a sworn accounting.

Dozy Mmobuosi, along with Tingo Group, Agri-Fintech, and Tingo International Holdings, now faces charges that range from insider trading to lying to auditors and internal controls violations.

The SEC’s investigation, led by a team from the New York Regional Office, follows a month after the agency formally launched an inquiry into Tingo Group. This development coincided with the SEC’s suspension of trading in the shares of the self-described agritech company.

The charges against Tingo Group and its CEO come on the heels of an earlier report by Hindenburg Group, a prominent American short seller, which labeled Tingo Group as an “exceptionally obvious scam with completely fabricated financials” in June 2023.