New York, Friday, September 6, 2024- A US district court on August 29, imposed a $250 million fine on Tingo CEO Dozy Mmobuosi after finding him guilty of inflating financial performance metrics to mislead investors.
The court’s judgment, delivered in New York, also permanently bars Mmobuosi from serving as a director of any public company and trading as well.
The ruling came after Mmobuosi and his companies, including Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, failed to defend themselves against charges brought by the U.S. Securities and Exchange Commission (SEC).
The SEC’s civil complaint, filed last December, accused Mmobuosi of fabricating nearly all aspects of his companies’ financial statements, including assets, revenues, expenses, and customer data. A critical investigation into Tingo’s practices was initiated after Hindenburg Research published a report that exposed significant irregularities.
The report revealed that Tingo claimed to have over 9 million customers in Nigeria, primarily farmers, and boasted of a robust food processing business.
However, the SEC discovered that Tingo Mobile, a subsidiary, reported having $461.7 million in cash and equivalents in Nigerian bank accounts for 2022, but the actual balance was found to be less than $50.
The regulator barred Mmobuosi, Tingo Group, and its affiliates from violating anti-fraud provisions under the SEC Act of 1933 and the Exchange Act of 1934.
The SEC ordered Tingo International and Mmobuosi to jointly pay $156.67 million in disgorgement and $20.19 million in prejudgment interest. Additionally, Mmobuosi faces a $27.6 million disgorgement, $204 million for the cancellation of a promissory note, and a civil penalty exceeding $31 million. The firm also faces fines and the cancellation of all Agri-Fintech stock shares held by Tingo International and Mmobuosi.
The court ruling against Tingo CEO Dozy Mmobuosi was issued after he and his companies failed to respond to the civil complaint filed by the SEC in December 2023.
