U.S. prosecutors have unveiled accusations against Odogwu Dozy Mmobuosi, the head honcho behind Tingo Group, a Nasdaq-listed “agri-fintech” startup. Allegations have surfaced, claiming Mmobuosi fabricated revenues and assets across three companies under his command.
The charges laid out against Mmobuosi are substantial, spanning conspiracy, securities fraud, and making false filings with the Securities and Exchange Commission. These accusations, if proven, carry a maximum penalty of 45 years in prison. Currently, Mmobuosi is reportedly on the lam.
The indictment contends that Mmobuosi allegedly steered a deceptive course, misrepresenting the status of his Nigerian ventures – Tingo Mobile and Tingo Foods – as flourishing, profitable enterprises raking in hundreds of millions of dollars in revenue, respectively.
During 2022, Tingo Group had purportedly reported holding a significant $461.7 million in cash and cash equivalents for the fiscal year. However, investigations subsequently revealed that the combined total in its bank accounts barely scraped above $50.
In media appearances and interviews, Mmobuosi vigorously bolstered his businesses, even claiming in 2021 that Tingo boasted 12 million users and commanded a valuation of $6.3 billion. Moreover, he extensively discussed plans for the company’s New York Stock Exchange listing by 2021.
However, behind the scenes, reality starkly contrasted with these claims. Tingo’s Nasdaq listing was purportedly secured through a string of reverse mergers allegedly backed by falsified financials. Access to U.S. investors and capital was gained through this maneuver. According to U.S. prosecutors, Mmobuosi allegedly managed to siphon off an estimated $16 million from Tingo Group.
However, the grand façade was short-lived. Hinderburg Research, an infamous American short seller, released a report flagging Tingo’s financials and operations as fraudulent on a colossal scale.
Due to calls for official scrutiny, on December 18, the SEC launched an inquiry into the company, immediately suspending trading in Tingo’s shares. Two days later, Dozy Mmobuosi chose to temporarily step down from his role.
