Dozy Mmobuosi Faces Charge on Account of Multimillion Dollar Fraud

Dozy Mmobuosi, a Nigerian tech-preneur,  billionaire, and the CEO of Tingo, inc. has been reportedly charged by the United States and Exchange Commission with fraud. 

According to the USEC, the company had claimed to have $ 461.7 million in its subsidiary Tingo Mobile's Nigeria bank accounts, whereas the actual balance in those accounts was only $50. The commission explained that Mmobuosi faces charges related to an alleged long-term plan to artificially boost the financial performance indicators of his firms and essential operational branches, aiming to deceive investors across the globe.

Referring to the complaint filed by the SEC on the 18th of December, 2023, Mmobuosi led a plan to create false financial records and related documents for the three entities along with their Nigerian branches, Tingo Mobile Limited and Tingo Foods PLC. This complaint also accuses Mmobuosi and the entities of presenting misleading information about their business activities and financial achievements in press releases, regular SEC submissions, and public statements.

The SEC shared that it is pursuing immediate measures to stop the defendants' ongoing spread of significantly inaccurate details to investors and to safeguard both corporate assets and the interests of investors.

"For instance, Tingo Group’s fiscal year 2022 Form 10-K filed in March 2023 reported a cash and cash equivalent balance of $461.7m in its subsidiary Tingo Mobile’s Nigeria bank accounts. In reality, those same bank accounts allegedly had a combined balance of less than $50 as of the end of fiscal year 2022."The SEC confirmed. 

Not only did Tingo falsify its accounts, but reports from the SEC said that the defendants also manipulated the customer connections that served as the foundation for their alleged businesses.

According to the complaint, Mmobuosi and the companies under his influence deceitfully acquired hundreds of millions in funds and assets through these plans. Furthermore, Mmobuosi diverted funds for his gain, buying luxury cars, traveling via private jets, and even trying, but unsuccessfully, to acquire a team in the English Football Club Premier League, among other ventures.

While all of this has been going on evidently, the SEC stated that it is even more displeased as Mmobuosi continually provided false information to auditors, engaging in insider trading, and refused to submit Forms 4 revealing the sale of numerous Agri-Fintech common stock, of which he was the primary beneficiary.

The lawsuit has been reportedly filed in the U.S. District Court for the Southern District of New York, charging the four defendants with breaching the anti-fraud regulations outlined in the federal securities law.