In a significant development, the United States Securities and Exchange Commission (SEC) filed charges on Monday against Nigerian businessman Mmobuosi Odogwu Banye, popularly known as Dozy Mmobuosi, who serves as the CEO of Tingo Group, and three associated companies. The charges allege the inflation of financial records for the companies and key subsidiaries, with the intent to defraud investors.
According to the SEC, Mmobuosi has been implicated in inflating the financial statements of Tingo Mobile Limited since 2019. The commission contends that despite the reported $461.7 million for the 2022 fiscal year, the company’s bank account allegedly revealed a combined balance of less than $50.
The SEC’s complaint, filed on December 18, 2023, accuses Mmobuosi of orchestrating a scheme to fabricate financial statements and documents for the three entities and their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC. The complaint further alleges that Mmobuosi and the entities made material misrepresentations about their business operations and financial success in various public statements, press releases, and periodic SEC filings.
For instance, the fiscal year 2022 Form 10-K of Tingo Group, submitted in March 2023, reported a cash and cash equivalent balance of $461.7 million in Tingo Mobile’s Nigerian bank accounts. However, the SEC claims that the actual combined balance of these bank accounts was less than $50 at the end of the fiscal year 2022. The complaint also alleges the fabrication of customer relationships crucial to the entities’ purported businesses.
The SEC further disclosed that Mmobuosi, in an unrelated venture, attempted to acquire a Premier League club earlier in the year. The complaint contends that Mmobuosi and the entities under his control fraudulently obtained hundreds of millions in money or property through these schemes. It also alleges that Mmobuosi diverted funds for personal benefit, including purchasing luxury cars, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.
The commission has filed a complaint in the U.S. District Court for the Southern District of New York and has submitted six emergency applications. These applications include freezing Mmobuosi’s assets and preventing TIH, Agri-Fintech, and Tingo Group from transferring money or property or issuing shares to Mmobuosi. The SEC’s actions aim to curb further financial misconduct and protect investors from potential losses.
The unfolding legal proceedings will shed light on the extent of the alleged financial mismanagement and its repercussions on Tingo Group and its subsidiaries.
