US SEC charges Tingo Group Nigerian CEO, three companies with fraud

Tingo

18/12/2023 19:11

ABUJA, Dec 18 (Reuters) - The U.S. Securities and
Exchange Commission (SEC) on Monday filed charges against
Nigerian businessman Dozy Mmobuosi and three companies of which
he is CEO, alleging they inflated the financial performance of
the companies and key subsidiaries to defraud investors.
    The SEC said in a statement that it filed charges in U.S.
District Court in New York against Mmobuosi, who made headlines
this year following a bid to buy an English premier league team.
The SEC also charged Tingo Group, Agri-Fintech Holdings and
Tingo International Holdings for violating the anti-fraud
provisions of the federal securities laws and Nasdaq reporting
and internal controls.
    Tingo Group's shares slumped in June after short-seller
Hindenburg Research criticized its founder and alleged that the
fintech firm had "fabricated" its financials. 
    Tingo categorically refuted all the allegations of the
report, saying it was full of "misleading and libellous
content". The company also said had hired a law firm to conduct
an independent review of Hindenburg's claims.
    The SEC imposed a two-week suspension of trading in Tingo
Group's securities on Nov. 14 following investigations.
    Nasdaq advised it will continue to keep the company's
securities halted pending a review, Tingo Group said in a
statement. 
    Mmobuosi and the companies could not be immediately reached
for comments but Tingo Group said in a statement on its website
that it would "fully cooperate" with regulators.
    The SEC alleges that, since at least 2019, Mmobuosi
falsified financial statements and other documents of the three
companies and their Nigerian units Tingo Mobile and Tingo Foods.
   
    The complaint further alleges Mmobuosi made material
misrepresentations about their business operations and financial
success, and siphoned off funds for his benefit.
    "Mmobuosi and the entities he controls have fraudulently
obtained hundreds of millions in money or property through these
schemes," the SEC statement said.
    The SEC is seeking emergency relief freezing Mmobuosi's
assets and prohibiting the three companies from transferring
money or property or issuing shares to Mmobuosi.
    The SEC also seeks an order preventing the defendants from
selling or disposing of their respective holdings in
Agri-Fintech or Tingo Group and prohibiting them and their
agents from destroying, altering, or concealing records and
documents.
    The SEC's investigation, supervised by Tejal D. Shah, is
ongoing, it said in the statement.   

 (Reporting by Elisha Bala-Gbogbo; Editing by Josie Kao)
 ((Elisha.Bala-Gbogbo@thomsonreuters.com; Reuters Messaging:
elisha.bala-gbgobo.thomsonreuters.com@reuters.net))