SEC Charges Nigerian Businessman Dozy Mmobuosi for Massive Fraud

The United States Securities and Exchange Commission (SEC) has initiated legal action against prominent Nigerian businessman, Dozy Mmobuosi.

This includes his associated companies, Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings.

This legal move stems from allegations of orchestrating a substantial fraudulent scheme.

Filed recently, these charges accuse the defendants of inflating financial figures and fabricating statements linked to Nigerian affiliates.

The SEC alleges involvement in fictitious transactions worth billions of dollars, dating back to 2019.

The SEC’s complaint highlights the staggering extent of the purported fraud. This development follows the suspension of trading in securities of Tingo Group and Agri-Fintech Holdings a month ago.

The suspension arose due to concerns surrounding the accuracy and adequacy of publicly available information.

Impact of Hindenburg’s Revelations on Tingo Group

Earlier this year, Hindenburg Research made headlines by revealing a short position in Tingo Group, causing shares to plummet by more than 60 percent.

The report from this renowned shortseller accused Tingo of manipulating financial records. It also questioned Mmobuosi’s claims of creating “Nigeria’s first mobile payment app.”

Tingo Group, established by Mmobuosi nearly two decades ago, focused on agri-fintech endeavors in Africa, notably with Tingo Mobile PLC.

However, the company faced intensified scrutiny following Hindenburg’s report, which labeled it an “exceptionally obvious scam.”

The SEC alleges that Tingo Group reported $461.7 million in cash and cash equivalents for 2022 in its Nigerian subsidiary, Tingo Mobile.

However, sources indicate that the actual balance might have been less than $50 for the same financial year, raising doubts about financial accuracy.

Mmobuosi’s Controversial Ventures and Auditor’s Role

Despite the serious allegations, Deloitte provided an unqualified audit for Tingo’s 2022 accounts.

Questions surfaced about the audit’s thoroughness, with Hindenburg suggesting the possibility of a rushed assessment.

Deloitte Israel and its CEO, Ilan Birnfeld, have not yet commented on these allegations.

Mmobuosi, who previously sought to acquire football club, Sheffield United in the UK, encountered a setback as the court halted the takeover.

The court cited an outstanding county court judgment against him for failing to pay rent, amounting to £0.030 million ($0.038 million).

Dozy Mmobuosi holds a significant 12.1 percent stake in Tingo, valued at over $50 million. The unfolding scandal raises concerns about the credibility of Tingo Group and its founder.

Regulatory bodies and investors are closely monitoring developments in this alleged fraud case, underscoring the severity and impact of the situation.