The United States Securities and Exchange Commission (SEC) has accused Tingo Group Inc. of falsely claiming to possess $461.7 million in its subsidiary Tingo Mobile’s Nigerian bank accounts, when in reality, only $50 was present. The SEC announced charges on Monday against Mmobuosi Banye, also known as Dozy Mmobuosi, and three affiliated US-based entities—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc., where he serves as the CEO.
The SEC alleges that Mmobuosi orchestrated a multi-year scheme to inflate financial metrics, deceive global investors, and fabricate financial statements and documents for the entities and their Nigerian subsidiaries, Tingo Mobile Limited and Tingo Foods PLC. Seeking emergency relief, the SEC aims to prevent the dissemination of false information and protect corporate and investor assets.
In its statement, the SEC stated: “The SEC’s complaint, filed on December 18, 2023, alleges that, since at least 2019, Mmobuosi spearheaded a scheme to fabricate financial statements and other documents of the three entities and their Nigerian operating subsidiaries…”
The complaint further revealed discrepancies in Tingo Group’s reporting: “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 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.”
Highlighting the extent of the alleged fraudulent activities, the complaint stated: “The complaint alleges that Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes…”
Moreover, the SEC underscored Mmobuosi’s personal benefit from the alleged misconduct: “Mmobuosi has siphoned off funds for his personal benefit, including purchases of luxury cars and travel on private jets, as well as an unsuccessful attempt to acquire an English Football Club Premier League team, among other things.”
The SEC’s case, filed in the U.S. District Court for the Southern District of New York, charges the defendants with violating federal securities laws’ anti-fraud provisions. Mmobuosi faces additional charges, including lying to auditors, insider trading, and failure to file Forms 4 disclosing the sales of millions of Agri-Fintech common stock, for which he was the ultimate beneficial owner.
