The U.S. Securities and Exchange Commission (SEC) has ordered Dozy Mmobuosi, CEO of Tingo Group, to pay more than $250 million in fines and barred him from serving as a director of any public company.
This decision follows an investigation launched by the SEC in 2023, after the charges against both the company and Mmobuosi in December.
Tingo Group, which has frequently placed itself as an agri-fintech leader and claimed significant revenues, has been listed on NASDAQ. However, the SEC alleged that the company significantly overstated its financial performance.
The investigation revealed that Tingo Mobile, one of its subsidiaries, reported cash reserves of $461.7 million in Nigerian bank accounts for 2022. In reality, the actual balance was less than $50, according to the SEC.
In its findings, the 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 denying the charges, neither Mmobuosi nor the company defended themselves in court. As a result, U.S. District Court Judge Jesse M. Furman of the Southern District of New York ruled in favor of the SEC, issuing the penalties and imposing the ban.
This outcome marks a significant blow to Tingo Group, a company that has long been viewed with skepticism due to its lack of transparency.
