The U.S. Securities and Exchange Commission (SEC) is set to file charges against Dozy Mmobuosi, CEO of Tingo Group, accusing him of fabricating financial statements and documents for three entities under Tingo Group, namely Tingo Mobile and Tingo Foods PLC.
Dozy Mmobuosi, along with all three subsidiaries, faces a range of charges, including insider trading, providing false information to auditors, failure to disclose the sale of millions of common shares, of which he was the ultimate beneficial owner, and violations of internal controls.
The SEC’s announcement follows a month-long investigation into Tingo Group, during which trading of the self-proclaimed agritech company’s shares was suspended. The SEC alleges that Mmobuosi and the entities made material misrepresentations about their business operations and financial success in press releases and periodic SEC filings.
Read more: US SEC Suspends Tingo Group Trading Over Inaccuracy
SEC on Tingo Group’s trail
One notable misrepresentation highlighted by the SEC is Tingo Group’s claim of having $461.7 million in cash and cash equivalents for the fiscal year 2022, while its bank accounts reportedly held less than $50 in total. The SEC further accuses Mmobuosi of obtaining hundreds of millions of dollars fraudulently, diverting funds for personal benefits such as luxury car purchases, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.
The controversy surrounding Tingo Group gained public attention when Hindenburg Group, a well-known American short seller, published an explosive report in June 2023, labeling Tingo Group as an “exceptionally obvious scam with completely fabricated financials.”
This is not the first time the U.S. SEC is going head to head with the Tingo Group. The trading of the shares of Tingo Group shares, was temporarily suspended by the U.S. Securities and Exchange Commission (SEC).
The suspension, set to last until Nov. 28, is due to concerns raised by the SEC regarding the adequacy and accuracy of publicly available information related to Tingo Group. This suspension also extends to Agri-Fintech Holdings, an entity associated with Tingo, owing to a lack of what the SEC deems as “adequate and accurate” information.
