(Bloomberg) - The founder of financial technology company Tingo Group was charged with securities fraud in New York, accused of orchestrating a massive scheme to inflate the company’s finances.
Federal prosecutors said Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, artificially boosted financial statements to make Tingo and its subsidiaries appear cash-rich. He allegedly directed an employee to give false bank statements to Nasdaq to list Tingo Mobile shares on the exchange in 2020 and then generated millions of dollars in profit by selling shares at inflated prices, the US claimed.
“With this indictment Mmobuosi’s alleged deceitful scheme comes to an end,” Southern District of New York US Attorney Damian Williams said Tuesday in a statement. Mmobuosi, who is from Nigeria, is still at large.
Mmobuosi, who is also Tingo’s former chief executive officer, faces three charges including making false filings with the US Securities and Exchange Commission. Tuesday’s indictment comes two weeks after the SEC sued Mmobuosi, 45, and Tingo Group in December for orchestrating a fraud of “staggering” scope.
According to the SEC’s claims, Tingo reported a cash balance of $461.7 million in March when legitimate bank records showed less than $50.
Short seller Hindenburg Research claimed last June that Tingo was built on fraud, causing the company’s share price to plummet by 48%. Mmobuosi — who for a time was seen as a potential buyer of English football club Sheffield United — allegedly used the his illicit profits to buy luxury cars and travel on private jets, the SEC suit alleged.
(Adds details from indictment and background)
By Ava Benny-Morrison
