Tingo founder, Dozy Mmobuosi charged by the US SEC with extensive fraud

Dozy Mmuobosi, also known as Mmobuosi Odogwu Banye, has been charged by the United States Securities and Exchange Commission (SEC) for allegedly defrauding investors. He reportedly inflated the financial performance of three of his firms, namely Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings.

The SEC claims that Mmuobuosi provided false information concerning Tingo’s operations and finances. As per a statement from the SEC, the company supposedly made up customer relationships and fraudulently procured millions in assets through these schemes.

The SEC is now seeking emergency relief to prevent the spread of misleading information and safeguard both corporate and investor assets. This action follows the SEC’s temporary suspension of Tingo shares trading last month, due to the company’s distribution of inaccurate information via press releases and routine SEC filings.

A recent report from Hindenburg categorized Tingo as a “exceptionally obvious scam,” casting suspicions over several declarations made by Mmuobosi and his Tingo-affiliated enterprises.

The report refutes Tingo’s assertions of having sold over 12 million smartphones to African farmers, calling them false. The alleged partners, farming cooperatives, have denied any business association with the company. Nwassa, an agricultural marketplace initiated by Tingo, was never operational, and Hindenburg’s investigation suggests the business never existed.

Previously Mmuobuosi stated that the marketplace, as of May 2019, facilitated fewer than 500,000 transactions, but projected growth up to 2 million.

The SEC, in its emergency application, is requesting a temporary restraining order to freeze Mmuobuosi’s assets. It’s also seeking to bar the transfer of funds or property to him, prohibit the sale of Afri-Fintech and Tingo Group shares, prevent record destruction, and mandate a show cause for preliminary relief.

The ongoing SEC investigation is spearheaded by the New York Regional Office, with assistance from Nasdaq’s Enforcement Department.