The entrepreneur and his trio of enterprises were involved in a plot to artificially boost their earnings, gains, and financial reserves by a substantial sum of hundreds of millions of dollars
The Securities and Exchange Commission ended the year with a bang by making a significant announcement regarding Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, and his affiliated entities.
The SEC has successfully obtained a temporary asset freeze, restraining order, and other emergency relief against Mmobuosi and his three U.S.-based companies, where he serves as the CEO. This action is in response to an alleged long-term scheme orchestrated by Mmobuosi to manipulate the financial performance metrics of his companies and their key subsidiaries, with the intention of defrauding investors worldwide.
According to the SEC's complaint, which was filed on December 18, 2023, Mmobuosi has been at the forefront of fabricating financial statements and other documents for his entities, namely Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc., as well as their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC.
The complaint further reveals that Mmobuosi and the entities under his control have made significant misrepresentations about their business operations and financial achievements through press releases, periodic SEC filings, and other public statements. As an example, the fiscal year 2022 Form 10-K of Tingo Group, filed in March 2023, reported a cash and cash equivalent balance of $461.7 million in the Nigerian bank accounts of its subsidiary, Tingo Mobile.
Surprisingly, those very bank accounts supposedly held a combined balance of less than $50 by the end of fiscal year 2022. The SEC's complaint reveals that the Defendants went even further by inventing customer relationships to support their supposed businesses.
The complaint accuses Mmobuosi and his controlled entities of deceitfully acquiring hundreds of millions in money or property through these fraudulent schemes. It also exposes Mmobuosi's personal indulgences, such as splurging on luxury cars, traveling on private jets, and even attempting to acquire an English Football Club Premier League team, all at the expense of others.
“As alleged, Mmobuosi spearheaded a brazen scheme using phony records and fictitious entities to make the Tingo companies he controlled appear highly profitable, so that he could hoodwink investors and reap massive benefits at their expense,” said Antonia M. Apps, Regional Director of the SEC’s New York Regional Office. “We filed this emergency action to expose Mmobuosi’s fraud and hold him accountable, while protecting investors from further harm.”
In the U.S. District Court for the Southern District of New York, the SEC has filed a complaint against all four Defendants for violating the anti-fraud provisions of the federal securities laws. Additionally, Nasdaq-listed Tingo Group, OTC-traded Agri-Fintech, and Mmobuosi are charged with reporting, books and records, and internal controls violations. Mmobuosi is further accused of lying to auditors, insider trading, and failing to disclose the sales of millions of Agri-Fintech common stock as the ultimate beneficial owner.
The complaint aims to obtain permanent injunctive relief, disgorgement of ill-gotten gains and prejudgment interest, civil penalties, and the return of bonuses and profits obtained by Mmobuosi through the sales of Tingo Group or Agri-Fintech stock, as per Section 304 of the Sarbanes-Oxley Act. Furthermore, the complaint seeks an order to prohibit Mmobuosi from holding any officer or director position in a public company or participating in the offering of any penny stock.
This enforcement action by the SEC demonstrates their commitment to protecting investors and maintaining the integrity of the financial markets. By freezing assets and obtaining a restraining order, the SEC aims to prevent further harm and ensure that justice is served.
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