US SEC Charges Nigerian Auditor For Aiding $250m Fraud by Former Tingo CEO

The US Securities and Exchange Commission (SEC) has charged Nigerian auditor Olayinka Oyebola and his firm, Olayinka Oyebola & Co. (Chartered Accountants), for allegedly aiding and abetting securities fraud carried out by Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, the former CEO of Tingo Group.

In a statement released on Monday, the SEC accused Oyebola and his firm, which is registered with the Public Company Accounting Oversight Board (PCAOB), of helping Mmobuosi and three US companies controlled by him in orchestrating a massive fraud scheme.

“The Securities and Exchange Commission today charged Olayinka Oyebola and his Public Company Accounting Oversight Board-registered accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), with aiding and abetting a massive securities fraud perpetrated by Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, and three related US companies that Mmobuosi controlled (the Tingo entities),” the SEC said.

The SEC has already obtained a $250 million final judgment against Mmobuosi and the Tingo entities.

According to the SEC’s complaint, Oyebola and his firm knowingly failed to act when they discovered that Mmobuosi and his companies were using multiple fake audit reports that bore Oyebola’s signature. These reports were included in SEC filings as if they were issued by his firm.

The SEC alleged that Oyebola made false statements to the then-auditor of one of the Tingo entities and helped conceal fraudulent reports, misleading auditors, investors, and regulators who relied on these fake reports.

Antonia Apps, director of the SEC’s New York regional office, criticised Oyebola and his firm, saying that as alleged, Oyebola and his firm violated the public trust and gave up their responsibilities as public company accountants and auditors by helping Mmobuosi and the Tingo entities effectuate and conceal their fraud.

The complaint, filed in the US District Court for the Southern District of New York, charges Oyebola and his firm with aiding and abetting violations of federal securities laws by Mmobuosi and the Tingo entities. It also seeks civil penalties and permanent injunctive relief, including a ban on Oyebola and his firm from acting as auditors or accountants for U.S. public companies or assisting in the preparation of financial statements for SEC filings.

The SEC’s ongoing investigation has been conducted by Michael DiBattista, Christopher Mele, Jeremy Brandt, Gerald Gross, and Rebecca Reilly, with litigation led by David Zetlin-Jones and Mr. DiBattista under the supervision of Alexander Vasilescu. The SEC acknowledged assistance from the Israel Securities Authority in the investigation.

Mmobuosi was previously charged by the SEC on December 18, 2023, for “orchestrating a staggering fraud” and providing false information to investors. He temporarily stepped down as co-CEO of Tingo Group two days after the charges, and a US federal court later fined him $250 million in a securities fraud suit by default judgment on September 1.

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