Nigerian businessman and former CEO of Tingo Group, Dozy Mmobuosi, has been hit with a $250 million fine by the U.S. Securities and Exchange Commission (SEC) for allegedly inflating the financial performance of his company. The SEC’s investigation, which started in 2023, uncovered that Tingo Group and its subsidiary, Tingo Mobile, had falsely reported significant revenue and cash reserves. In reality, Tingo Mobile’s Nigerian accounts held far less cash than claimed, leading to accusations of fraudulent financial reporting.
YEPS gathered that as part of the SEC’s ruling, Mmobuosi has been banned from serving as a director of any public company. The judgment also prohibits Tingo Group and its related entities from engaging in securities fraud. Despite the company’s denial of the charges, neither Mmobuosi nor Tingo Group defended themselves in court, resulting in a default judgment.
On December 18, 2023, The PUNCH reported that Mmobuosi was set to face charges from the SEC for falsifying financial statements and other records for three Tingo Group companies, including Tingo Mobile and Tingo Foods Plc. The SEC’s investigation revealed that Tingo Mobile had falsely reported cash and cash equivalents of $461.7 million in its Nigerian bank accounts for 2022, when the actual balance was less than $50.
A report by The Cable quoted the SEC as saying, “On August 29, the SEC announced that the U.S. District Court for the Southern District of New York entered final judgments against Mmobuosi and three U.S.-based entities—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.—on August 28.” The SEC accused Mmobuosi of orchestrating a multi-year scheme to inflate the financial performance metrics of his companies in a bid to defraud investors globally.
Following these developments, Mmobuosi stepped down as Tingo Group’s co-CEO just days after the charges were filed, and the SEC suspended trading of Tingo Group’s securities on NASDAQ, citing concerns over the accuracy of the company’s publicly available information. This move further eroded investor confidence in the firm.
Mmobuosi’s companies came under intense scrutiny last year when Hindenburg Research, a U.S.-based short-seller, released a damning report labeling Tingo Group as an “exceptionally obvious scam.” The report caused Tingo’s stock price to drop by over 60% in a single day, raising serious questions about the legitimacy of Mmobuosi’s operations.
Mmobuosi, who had gained international attention in early 2023 with his bid to purchase Sheffield United, a football club in the English Premier League, saw his reputation take a significant hit. His proposed acquisition, which never materialized, was part of his broader ambition to position himself as a global business leader. However, doubts about his wealth and the viability of his companies have cast a shadow over these ambitions.
Despite Tingo Group’s lofty claims, the company has long been regarded with suspicion, given the lack of transparency surrounding its operations. The SEC’s charges, coupled with the trading suspension, have further tarnished the company’s image, leaving investors wary of the firm’s future.
