Dozy Mmobuosi, a Nigerian entrepreneur, will pay more than $250 million in fines after the Securities and Exchange Commission (SEC) filed a fraud lawsuit against him and three of his firms.
These legal events began for Tingo in June 2023, following a Hindenburg Research investigation that showed anomalies at Tingo Group and challenged many claims made by Tingo and its CEO, branding it as an “exceptionally obvious scam.”
According to the study, Tingo claims to have sold more than 12 million smartphones to African farmers.
However, the SEC claimed that the corporation exaggerated its financial results.
Tingo Mobile, one of its Nigerian companies, claimed cash and cash equivalents of $461.7 million in 2022, but its real bank balance was less than $50, according to the SEC.
Judge Jesse M. Furman of the United States District Court for the Southern District of New York issued the final judgement against Mmobuosi and his firms, which included two Nasdaq-listed entities, Tingo Group and Agri-Fintech Holdings, as well as Tingo International Holdings.
The court determined that Mmobuosi and his enterprises had “failed to answer, plead, or otherwise defend” themselves in response to the SEC’s civil action filed in December.
“The judgments, entered on the basis of default, enjoin Mmobuosi, Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings from violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. “
Mmobuosi also reportedly attempted to purchase Sheffield United, a club that competed in the English Premier League but was later relegated to the second division of English football; however, the intended acquisition never materialised.
We earlier reported that the SEC has taken legal action against Novatech and its founders, Cynthia and Eddy Petion, alongside several promoters, for allegedly orchestrating a large-scale fraud.
