The U.S. Securities and Exchange Commission (SEC) has charged Nigerian auditor Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co., with aiding and abetting a large-scale securities fraud orchestrated by businessman Dozy Mmobuosi and his U.S.-based companies, collectively known as the Tingo entities. This comes in the wake of a $250 million judgment secured by the SEC against Mmobuosi and his companies for defrauding investors on a global scale.
The Allegations
The SEC’s complaint alleges that Oyebola and his firm were central to enabling Mmobuosi’s fraudulent scheme by falsifying audit reports. These reports, which bore Oyebola’s signature, were submitted as legitimate to the SEC, misleading investors into believing that the Tingo entities were financially sound. In reality, the financial metrics provided were grossly inflated, and the firms were not as profitable as claimed.
According to the SEC, Oyebola also misled another auditor involved with one of the Tingo entities, concealing that the audit reports were fake. This allowed Mmobuosi and his companies to deceive investors for several years, resulting in significant financial losses for those who believed in the inflated performance metrics of the Tingo entities.
The SEC’s Response
Antonia M. Apps, Director of the SEC’s New York Regional Office, condemned Oyebola’s actions, highlighting the breach of trust associated with his role as an auditor. “As alleged, Oyebola and his firm violated the public trust and abdicated their responsibilities as public company accountants by assisting Mmobuosi and the Tingo entities in executing and concealing their fraud,” she stated.
The SEC has made it clear that they will hold financial gatekeepers accountable when they contribute to fraudulent activities, as they play a crucial role in maintaining the integrity of public markets.
Legal Actions and Penalties
The SEC has filed a complaint in the U.S. District Court for the Southern District of New York. Oyebola and his firm face charges of aiding and abetting violations of federal securities laws. They are also accused of assisting Mmobuosi in lying to auditors. The SEC is seeking civil penalties, as well as a permanent ban on Oyebola and his firm from acting as auditors or accountants for any U.S. public companies. This ban would also prevent them from providing substantial assistance in preparing financial statements filed with the SEC.
The Larger Fraud Scheme
This case is part of a broader fraud scheme involving Mmobuosi, who was recently fined $250 million in a U.S. federal court. Mmobuosi, along with his Tingo Group and Agri-Fintech Holdings, was accused of fabricating nearly all aspects of his businesses. The SEC’s investigation revealed that the assets, revenues, expenses, and even customers and suppliers of Mmobuosi’s companies were almost entirely fictional.
Tingo Group, one of the key companies in this fraud, had claimed to serve over nine million Nigerian farmers and boasted of operating a robust food processing operation. However, these claims were significantly exaggerated, further misleading investors about the true nature of the business.
