A US federal court has ordered Dozy Mmobuosi, former CEO of Tingo Group, to pay over $250 million in fines and banned him from serving as a director of any public company. The judgment came after the US Securities and Exchange Commission (SEC) charged Mmobuosi and his companies, including two Nasdaq-listed firms—Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc.—with fraud. The SEC accused them of inflating financial metrics to mislead investors globally.
Judge Jesse M. Furman of the Southern District of New York ruled against Mmobuosi and his companies after they failed to respond to the civil complaint. The SEC’s investigation revealed that Tingo’s claims of having over 9 million customers and substantial cash reserves were false. Shockingly, a reported cash balance of $461.7 million was found to be under $50. This exposed what the SEC described as a “staggering” level of fraud.
The controversy began when Hindenburg, a US-based short-seller, flagged Tingo’s financials as an “exceptionally obvious scam,” leading to a 60% drop in the company’s stock prices. Following these revelations, DataPro suspended Tingo Mobile’s credit rating. The US Security and Exchange Commission also suspended the trading of Tingo Group Inc. shares.
Despite these serious allegations, Mmobuosi has called the charges “baseless and unfounded,” attributing them to orchestrated attacks against his success as an African entrepreneur. However, the legal ramifications have been severe, with significant financial penalties imposed and a complete ban on Mmobuosi’s involvement in public companies. As the case unfolds, it remains a cautionary tale about the importance of transparency and integrity in the business world.
