Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, the founder of Tingo Group, a financial technology company, has been charged with securities fraud in New York; accused of masterminding an extensive scheme to artificially inflate the company’s financial health. He allegedly manipulated financial statements to present Tingo and its subsidiaries as possessing substantial cash reserves.
The indictment claims that he instructed an employee to provide false bank statements to Nasdaq for the listing of Tingo Mobile shares in 2020, subsequently profiting millions of dollars by selling shares at inflated prices.
US Attorney Damian Williams stated, “With this indictment, Mmobuosi’s alleged deceitful scheme comes to an end.” Mmobuosi, a native of Nigeria and Tingo’s former CEO, currently remains at large. The charges against him include making false filings with the US Securities and Exchange Commission (SEC).
This development follows the SEC’s legal action against Dozy Mmobuosi and Tingo Group two weeks ago, accusing them of orchestrating a fraud of “staggering” proportions. Thereafter Dozy issued a statement in response to the fraud allegations brought against him and his affiliated companies by the United States Securities and Exchange Commission (SEC), categorically denying the accusations, describing them as untrue and baseless.
According to the SEC, Tingo reported a cash balance of $461.7 million in March, while authentic bank records revealed less than $50. Short seller Hindenburg Research had previously raised fraud allegations against Tingo in June, resulting in a significant drop in the company’s share price. Mmobuosi is alleged to have used the illicit profits for personal indulgences, including the purchase of luxury cars and private jet travel, according to the SEC lawsuit.
