Tingo Group Founder Hit by Hindenburg Now Charged Criminally
The founder of financial technology company Tingo Group was charged with securities fraud in New York, accused of orchestrating a massive scheme to inflate the company’s finances.
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Tingo Group Founder Hit by Hindenburg Now Charged Criminally
- Criminal charges follow SEC lawsuit against Dozy Mmobuosi
- Mmobuosi is still ‘at large,’ federal prosecutors in NY said
By Ava Benny-Morrison
January 2, 2024 at 3:53 PM EST
Updated on January 2, 2024 at 4:42 PM EST
The founder of financial technology company Tingo Group was charged with securities fraud in New York, accused of orchestrating a massive scheme to inflate the company’s finances.
Federal prosecutors saidMmobuosi Odogwu Banye, also known as Dozy Mmobuosi, artificially boosted financial statements to make Tingo and its subsidiaries appear cash-rich. He allegedly directed an employee to give false bank statements to Nasdaq to list Tingo Mobile shares on the exchange in 2020 and then generated millions of dollars in profit by selling shares at inflated prices, the US claimed.
“With this indictment Mmobuosi’s alleged deceitful scheme comes to an end,” Southern District of New York US Attorney Damian Williams said Tuesday in a statement. Mmobuosi, who is from Nigeria, is still at large.
Mmobuosi, who is also Tingo’s former chief executive officer, faces three charges including making false filings with the US Securities and Exchange Commission. Tuesday’s indictment comes two weeks after the SEC sued Mmobuosi, 45, and Tingo Group in December for orchestrating a fraud of “staggering” scope.
Read More: SEC Claims ‘Staggering’ Fraud by Firm Hindenburg Called Out
According to the SEC’s claims, Tingo reported a cash balance of $461.7 million in March when legitimate bank records showed less than $50.
Short seller Hindenburg Research claimed last June that Tingo was built on fraud, causing the company’s share price to plummet by 48%. Mmobuosi — who for a time was seen as a potential buyer of English football club Sheffield United — allegedly used the his illicit profits to buy luxury cars and travel on private jets, the SEC suit alleged.
Tingo Founder Dozy Mmobuosi may face up to 45 years in prison
U.S. prosecutors have shared details of criminal charges brought against Dozy Mmobuosi, the founder and CEO of Tingo Group,
techcabal.com
Tingo Founder Dozy Mmobuosi charged with securities fraud in the U.S
U.S. prosecutors have shared details of criminal charges brought against Odogwu Dozy Mmobuosi, the founder and CEO of Tingo Group, a Nasdaq-listed “agri-fintech” startup. Mmobuosi is accused of reporting hundreds of millions of dollars in fictitious revenues and assets for three companies he controls.
He is charged with conspiracy, securities fraud and making false filings with the Securities and Exchange Commission. The three charges carry a maximum sentence of 45 years; prosecutors say Mmobuosi is at large.
According to the indictment, Mmobuosi “orchestrated a scheme to enrich himself by falsely representing that Nigerian companies he founded, Tingo Mobile and Tingo Foods, were operational, profitable businesses generating hundreds of millions of dollars in revenue, respectively.”
In 2022, Tingo Group reported that it had cash and cash equivalent of $461.7 million for the fiscal year. Investigations showed that its bank accounts held less than $50 in total.
Mmobuosi propped up his businesses in interviews over the years and, in 2021, told one publication that Tingo had 12 million users and a valuation of $6.3 billion. He told several publications about plans to list on the New York Stock Exchange by 2021.
In reality, Tingo was listed on the Nasdaq after a series of reverse mergers allegedly based on fake financials. Getting listed on the Nasdaq gave Mmobuosi and his companies access to US investors and capital. The U.S. prosecutors say he was able to siphon an estimated $16 million from Tingo Group.
The house of cards, propped up by grand claims, was short-lived. A report by Hinderburg Research, the infamous American short seller, soon called Tingo’s financials and operations into question, branding it a fraud of massive proportions.
On December 18, the SEC announced an investigation into the company, suspending trading in Tingo’s shares. Two days later, Dozy Mmobuosi temporarily stepped down.
