The United States Securities and Exchange Commission (SEC) has taken legal action against Dozy Mmobuosi, the Chief Executive Officer of Tingo Mobile, and three affiliated U.S.-based companies—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.—alleging a massive fraud scheme that involved inflating financial performance metrics to deceive global investors.
In a filing dated December 18, 2023, the SEC accused Mmobuosi of orchestrating a multi-year scheme aimed at fabricating financial statements and documents for the mentioned entities and their Nigerian subsidiaries—Tingo Mobile Limited and Tingo Foods PLC. The complaint alleges that these falsified documents were used to mislead investors through press releases, SEC filings and other public statements.
The SEC’s complaint specifically highlights instances of substantial misrepresentations in financial reports.
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“For instance, Tingo Group’s fiscal year 2022 Form 10-K filed in March 2023 reported a cash and cash equivalent balance of $461.7 million in its subsidiary Tingo Mobile’s Nigerian 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. According to the SEC’s complaint, Defendants also fabricated the customer relationships that formed the basis of their purported businesses,” the SEC stated.
The allegations also delve into the fraudulent creation of customer relationships forming the foundation of their purported businesses. Moreover, it’s alleged that Mmobuosi and the entities under his control obtained significant amounts of money or property through these schemes. Mmobuosi is accused of diverting funds for personal use, including luxury purchases like cars, private jet travel, and even an unsuccessful attempt to acquire an English Football Club Premier League team.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, involves charges of violating federal securities laws’ anti-fraud provisions against all four Defendants. Additional charges include reporting, books and records, and internal control violations against Nasdaq-listed Tingo Group, OTC-traded Agri-Fintech, and Mmobuosi. Furthermore, Mmobuosi faces charges of lying to auditors, insider trading, and failure to disclose millions of Agri-Fintech common stock sales.
The SEC seeks various forms of relief, including permanent injunctive measures, disgorgement of ill-gotten gains, civil penalties, and the return of profits obtained through stock sales. Additionally, it aims to restrain Mmobuosi from holding positions in public companies or participating in penny stock offerings.
In an emergency application, the SEC seeks temporary and preliminary relief, including freezing Mmobuosi’s assets, prohibiting money transfers or share issuances to Mmobuosi from TIH, Agri-Fintech, and Tingo Group, and preventing the disposal of stock holdings. The order also seeks to safeguard records, documents, and repatriation of proceeds pending further legal proceedings.
The SEC’s investigation involves a team from the New York Regional Office and is being led by several key individuals. The SEC acknowledges the support of Nasdaq’s Enforcement Department in this matter.
