US Government Charges Nigerian Billionaire with Multimillion-Dollar Fraud Days After Award Win

Nigerian billionaire businessman Mmobuosi Banye, also known as Dozy Mmobuosi, is facing fraud charges from the United States Securities and Exchange Commission. In a statement released on Monday, December 18, the SEC said Tingo Group, a pan-African agri-fintech innovator, lied about having $461.7m in its subsidiary Tingo Mobile’s Nigerian bank accounts when it only had $50.

SEC charges Tingo for lying Photo credit: US SEC, tech Source: Facebook Financial Times reports that Mmobuosi operates three affiliated US-based entities, of which he is the chief executive officer — Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.

Details of the charges against Tingo According to the SEC, Mmobuosi is being charged with an alleged multi-year scheme to inflate the financial performance metrics of his companies and key operating subsidiaries to defraud investors worldwide.

SEC also noted that it seeks emergency relief to prevent the defendants’ continued dissemination of false information to investors and protect corporate and investor assets.

The statement reads: “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, Tingo Mobile Limited and Tingo Foods PLC. “The complaint further alleges that Mmobuosi made and caused the entities to make material misrepresentations about their business operations and financial success in press releases, periodic SEC filings, and other public statements.

“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.

“According to the SEC’s complaint, Defendants also fabricated the customer relationships that formed the basis of their purported businesses. “The complaint alleges that Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes, and that 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 commission added that Mmobuosi was being charged with lying to auditors, insider trading, and failing to file Form 4 disclosing the sales of millions of Agri-Fintech common stock for which he was the ultimate beneficial owner.

The charges against Tingo CEO came barely a few days after Tingo bagged a new entry award at the 17th edition of the Seras Awards in Lagos. The Nation reports that the award organiser praised Tingo for its rapid advancement in the highly competitive industry.

Fraud: Opay, Palmpay announces account changes, ask customers to update Earlier, Legit.ng reported that two of Nigeria’s leading fintech companies announced changes to how customers’ accounts are verified. The move was in response to both the CBN directive and a recent video of loopholes exploited by fraudsters. The latest changes the fintech companies hope will ease the fears among customers.

Source: Legit.ng