US court orders Tingo CEO Dozy Mmobuosi to pay $250 Million fine over securities fraud

The CEO of Tingo Group, Mr. Dozy Mmobuosi, has been ordered by a U.S. federal court to pay over $250 million in fines following his involvement in a massive securities fraud scheme.

The ruling comes months after Mr. Mmobuosi was officially charged with securities fraud in New York, marking a significant legal defeat for the prominent Nigerian businessman.

Mr. Mmobuosi was first charged in December 2023, with allegations that he orchestrated a scheme to inflate the financial statements of Tingo Group and its subsidiaries, Tingo Mobile Limited and Tingo Foods PLC, to falsely present the companies as financially stable and liquid.

The U.S. Securities and Exchange Commission (SEC) accused Mr. Mmobuosi of fabricating financial documents dating back to 2019 to mislead investors and boost the company’s stock price.

Judge Jesse M. Furman of the U.S. District Court for the Southern District of New York handed down the ruling, which also barred Mr. Mmobuosi from serving as a director of any public company.

However, this prohibition does not extend to his businesses in Nigeria, which are not publicly listed.

The SEC’s judgment, entered by default, cited violations of several key anti-fraud provisions, including Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934.

In addition to the fines, the court’s ruling follows earlier actions by the SEC in March 2024, which included freezing Mr. Mmobuosi’s assets and restricting the financial operations of Tingo and its subsidiaries.

One of the most damning revelations in the case was the discrepancy between Tingo’s reported finances and its actual bank records.

Despite claiming to hold $461.7 million in one of its filings, legitimate bank records showed the company had less than $50.

This case highlights the SEC’s ongoing efforts to combat financial fraud and protect investors from fraudulent schemes.

It also serves as a stark warning to other executives and companies about the severe consequences of engaging in deceptive practices.