The U.S. Securities and Exchange Commission (SEC) initiated legal action on Monday by filing charges against Nigerian businessman Dozy Mmobuosi and three companies under his leadership. The charges assert that there was an intentional inflation of the financial performance of the companies and their key subsidiaries, constituting an alleged effort to defraud investors.
In an official statement, the SEC conveyed that the charges were lodged in the U.S. District Court in New York against Mmobuosi, a notable figure who gained attention earlier this year for attempting to acquire an English Premier League team. The SEC extended charges to Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, accusing them of violating anti-fraud provisions within federal securities laws, as well as breaching Nasdaq reporting and internal controls.
The June decline in Tingo Group’s shares, triggered by Hindenburg Research’s critical assessment of its founder and allegations of financial fabrication within the fintech firm, was underscored. Tingo Group vehemently denied all accusations from the report, characterizing it as containing “misleading and libelous content.” Additionally, the company disclosed its engagement of a law firm to independently review Hindenburg’s claims.
Following investigations, the SEC imposed a two-week suspension of trading in Tingo Group’s securities on November 14. Nasdaq, in alignment with this action, informed that it would maintain the suspension pending a thorough review, as stated in Tingo Group’s official release.
While Mmobuosi and the implicated companies were not immediately available for comments, Tingo Group expressed its commitment to “fully cooperate” with regulatory authorities in a statement on its website.
The SEC’s charges allege that Mmobuosi, since at least 2019, manipulated financial statements and other documentation related to the three companies and their Nigerian entities, Tingo Mobile and Tingo Foods. Furthermore, the complaint contends that Mmobuosi misrepresented significant aspects of their business operations and financial achievements, while also diverting funds for personal gain.
The SEC seeks urgent relief, including the freezing of Mmobuosi’s assets and the prevention of the three companies from transferring money, property, or issuing shares to Mmobuosi. Additionally, the SEC aims to prohibit the defendants from selling or disposing of their holdings in Agri-Fintech or Tingo Group, with a mandate preventing them and their agents from tampering with, altering, or concealing records and documents.
The SEC underscored the ongoing nature of its investigation, which is under the supervision of Tejal D. Shah, according to the concluding remarks in the official statement.
Ref: Reuters
