Dozy Mmobuosi, the CEO of Tingo Group, has been banned from serving as a director of any public company and sentenced to pay over $250 million by the US Securities and Exchange Commission (SEC).
In December of 2023, the SEC filed charges against Tingo Group and its CEO, following the opening of an inquiry into the business. The business was listed on the NASDAQ and has frequently referred to itself as an agri-fintech, reporting millions of dollars in revenue.
Still, the SEC claimed that the business overstated its earnings. According to the SEC, one of its subsidiaries, Tingo Mobile, reported having $461.7 million in cash and cash equivalents in its Nigerian bank accounts for 2022, but in reality, it had less than $50 in cash.
SEC stated: “The judgments, entered, on the basis of default, enjoin Mmobuosi, Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings from violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.”
Despite Tingo’s denial of the claims, the firm and its CEO did not enter a defense in the legal complaint, claimed the Financial Times, BrandSpur digital news platform reports.
In the Southern District of New York, US District Court Judge Jesse M. Furman fined Mmobuosi and his three US-based companies over $250 million. Given how little was known about the company, Tingo has long been considered a curiosity despite its lofty claims.
