© Reuters. FILE PHOTO: The seal of the U.S. Securities and Change Fee (SEC) is seen at their headquarters in Washington, D.C., U.S., Could 12, 2021. REUTERS/Andrew Kelly/File Photograph
ABUJA (Reuters) – The U.S. Securities and Change Fee (SEC) on Monday filed prices in opposition to Nigerian businessman Dozy Mmobuosi and three firms of which he’s CEO, alleging they inflated the monetary efficiency of the businesses and key subsidiaries to defraud buyers.
The SEC mentioned in a press release that it filed prices in U.S. District Court docket in New York in opposition to Mmobuosi, who made headlines this 12 months following a bid to purchase an English premier league workforce. The SEC additionally charged Tingo Group, Agri-Fintech Holdings and Tingo Worldwide Holdings for violating the anti-fraud provisions of the federal securities legal guidelines and Nasdaq reporting and inside controls.
Tingo Group’s shares slumped in June after short-seller Hindenburg Analysis criticized its founder and alleged that the fintech agency had “fabricated” its financials.
Tingo categorically refuted all of the allegations of the report, saying it was filled with “misleading and libellous content”. The corporate additionally mentioned had employed a legislation agency to conduct an impartial assessment of Hindenburg’s claims.
The SEC imposed a two-week suspension of buying and selling in Tingo Group’s securities on Nov. 14 following investigations.
Nasdaq suggested it’ll proceed to maintain the corporate’s securities halted pending a assessment, Tingo Group mentioned in a press release.
Mmobuosi and the businesses couldn’t be instantly reached for feedback however Tingo Group mentioned in a press release on its web site that it might “fully cooperate” with regulators.
The SEC alleges that, since a minimum of 2019, Mmobuosi falsified monetary statements and different paperwork of the three firms and their Nigerian items Tingo Cell and Tingo Meals.
The criticism additional alleges Mmobuosi made materials misrepresentations about their enterprise operations and monetary success, and siphoned off funds for his profit.
“Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes,” the SEC assertion mentioned.
The SEC is searching for emergency aid freezing Mmobuosi’s property and prohibiting the three firms from transferring cash or property or issuing shares to Mmobuosi.
The SEC additionally seeks an order stopping the defendants from promoting or disposing of their respective holdings in Agri-Fintech or Tingo Group and prohibiting them and their brokers from destroying, altering, or concealing data and paperwork.
The SEC’s investigation, supervised by Tejal D. Shah, is ongoing, it mentioned within the assertion.
