Nigerian businessman and three companies allegedly inflated financial performance and key subsidiaries
19 December 2023 - 13:48
byAgency Staff
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The seal of the US Securities and Exchange Commission. Picture: ANDREW KELLY
Abuja — The US Securities and Exchange Commission (SEC) has filed charges against Nigerian businessman Dozy Mmobuosi and three companies of which he is CEO, alleging they inflated the financial performance of the companies and key subsidiaries to defraud investors.
The SEC said in a statement that it filed charges in US district court in New York against Mmobuosi, who made headlines this year with a bid to buy an English premier league team. The SEC also charged Tingo Group, Agri-Fintech Holdings and Tingo International Holdings for contravening antifraud provisions of the federal securities laws and Nasdaq reporting and internal controls.
Tingo Group’s share price slumped in June after short-seller Hindenburg Research criticised its founder and alleged that the fintech firm “fabricated” its financial statements.
Tingo categorically denied all allegations of the report, saying it was full of “misleading and libellous content. The company also said it hired a law firm to conduct an independent review of Hindenburg’s claims.
The SEC imposed a two-week suspension of trading in Tingo Group's securities on November 14 after investigation.
Nasdaq advised it will continue to keep the company’s securities halted pending a review, Tingo Group said in a statement.
Mmobuosi and the companies could not be reached immediately for comments, but Tingo Group said on its website that it would fully co-operate” with regulators.
The SEC alleges that, since at least 2019, Mmobuosi falsified financial statements and other documents of the three companies and their Nigerian units Tingo Mobile and Tingo Foods.
The complaint alleges Mmobuosi made material misrepresentations about their business operations and financial success, and siphoned off funds for his benefit.
“Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes,” the SEC statement said.
The SEC is seeking emergency relief freezing Mmobuosi’s assets and prohibiting the three companies from transferring money or property or issuing shares to Mmobuosi.
The SEC also seeks an order preventing the defendants from selling or disposing of their respective holdings in Agri-Fintech or Tingo Group and prohibiting them and their agents from destroying, altering, or concealing records and documents.
The SEC investigation, supervised by Tejal D. Shah, continues, it said in the statement.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
US regulator charges Tingo Group CEO with fraud
Nigerian businessman and three companies allegedly inflated financial performance and key subsidiaries
Abuja — The US Securities and Exchange Commission (SEC) has filed charges against Nigerian businessman Dozy Mmobuosi and three companies of which he is CEO, alleging they inflated the financial performance of the companies and key subsidiaries to defraud investors.
The SEC said in a statement that it filed charges in US district court in New York against Mmobuosi, who made headlines this year with a bid to buy an English premier league team. The SEC also charged Tingo Group, Agri-Fintech Holdings and Tingo International Holdings for contravening antifraud provisions of the federal securities laws and Nasdaq reporting and internal controls.
Tingo Group’s share price slumped in June after short-seller Hindenburg Research criticised its founder and alleged that the fintech firm “fabricated” its financial statements.
Tingo categorically denied all allegations of the report, saying it was full of “misleading and libellous content. The company also said it hired a law firm to conduct an independent review of Hindenburg’s claims.
The SEC imposed a two-week suspension of trading in Tingo Group's securities on November 14 after investigation.
Nasdaq advised it will continue to keep the company’s securities halted pending a review, Tingo Group said in a statement.
Mmobuosi and the companies could not be reached immediately for comments, but Tingo Group said on its website that it would fully co-operate” with regulators.
The SEC alleges that, since at least 2019, Mmobuosi falsified financial statements and other documents of the three companies and their Nigerian units Tingo Mobile and Tingo Foods.
The complaint alleges Mmobuosi made material misrepresentations about their business operations and financial success, and siphoned off funds for his benefit.
“Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes,” the SEC statement said.
The SEC is seeking emergency relief freezing Mmobuosi’s assets and prohibiting the three companies from transferring money or property or issuing shares to Mmobuosi.
The SEC also seeks an order preventing the defendants from selling or disposing of their respective holdings in Agri-Fintech or Tingo Group and prohibiting them and their agents from destroying, altering, or concealing records and documents.
The SEC investigation, supervised by Tejal D. Shah, continues, it said in the statement.
Reuters
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