The founder of financial technology company, Tingo Group, Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi has been charged with securities fraud in New York, accused of orchestrating a massive scheme to inflate the company’s finances.
Federal prosecutors he artificially boosted financial statements to make Tingo and its subsidiaries appear cash-rich.
According to the Securities and Exchange Commission’s claims, Tingo reported a cash balance of $461.7 million in March when legitimate bank records showed less than $50.
He allegedly directed an employee to give false bank statements to Nasdaq to list Tingo Mobile shares on the exchange in 2020 and then generated millions of dollars in profit by selling shares at inflated prices, the US claimed.
Mmobuosi is accused of reporting hundreds of millions of dollars in fictitious revenues and assets for three companies he controls.
He is charged with conspiracy, securities fraud and making false filings with the Securities and Exchange Commission.
Prosecutors say the three charges carry a maximum sentence of 45 years.
According to the indictment, Mmobuosi “orchestrated a scheme to enrich himself by falsely representing that Nigerian companies he founded, Tingo Mobile and Tingo Foods, were operational, profitable businesses generating hundreds of millions of dollars in revenue, respectively.”
Mmobuosi propped up his businesses in interviews over the years and, in 2021, told one publication that Tingo had 12 million users and a valuation of $6.3 billion.
He told several publications about plans to list on the New York Stock Exchange by 2021.
On December 18, the SEC announced an investigation into the company, suspending trading in Tingo’s shares and two days later, Mmobuosi temporarily stepped down.
Follow us on:
