Afrigather U.S. prosecutors have shared particulars of legal prices introduced in opposition to Odogwu Dozy Mmobuosi, the founder and CEO of Tingo Group, a Nasdaq-listed “agri-fintech” startup. Mmobuosi is accused of reporting lots of of thousands and thousands of {dollars} in fictitious revenues and belongings for 3 corporations he controls.
He’s charged with conspiracy, securities fraud and making false filings with the Securities and Change Fee. The three prices carry a most sentence of 45 years; prosecutors say Mmobuosi is at massive.
In line with the indictment, Mmobuosi “orchestrated a scheme to counterpoint himself by falsely representing that Nigerian corporations he based, Tingo Cell and Tingo Meals, have been operational, worthwhile companies producing lots of of thousands and thousands of {dollars} in income, respectively.”
In 2022, Tingo Group reported that it had money and money equal of $461.7 million for the fiscal 12 months. Investigations confirmed that its financial institution accounts held lower than $50 in whole.
Mmobuosi propped up his companies in interviews over time and, in 2021, informed one publication that Tingo had 12 million customers and a valuation of $6.3 billion. He informed a number of publications about plans to record on the New York Inventory Change by 2021.
In actuality, Tingo was listed on the Nasdaq after a collection of reverse mergers allegedly primarily based on faux financials. Getting listed on the Nasdaq gave Mmobuosi and his corporations entry to US buyers and capital. The U.S. prosecutors say he was capable of siphon an estimated $16 million from Tingo Group.
The home of playing cards, propped up by grand claims, was short-lived. A report by Hinderburg Analysis, the notorious American brief vendor, quickly known as Tingo’s financials and operations into query, branding it a fraud of huge proportions.
On December 18, the SEC introduced an investigation into the corporate, suspending buying and selling in Tingo’s shares. Two days later, Dozy Mmobuosi quickly stepped down.
