By Ken Afor
U.S. prosecutors have disclosed specific information regarding the criminal charges filed against Odogwu Dozy Mmobuosi, founder and CEO of Tingo Group, a pioneering “agri-fintech” startup listed on Nasdaq.
Mmobuosi stands accused of fabricating revenues and assets worth hundreds of millions of dollars for three companies under his control.
The individual is facing allegations of conspiracy, securities fraud, and submitting false documents to the Securities and Exchange Commission (SEC). If convicted, these three charges could result in a maximum prison term of 45 years.
Authorities have stated that Mmobuosi is currently evading capture.
The indictment stated that Mmobuosi “orchestrated a scheme to enrich himself by falsely representing that Nigerian companies he founded, Tingo Mobile and Tingo Foods, were operational, profitable businesses generating hundreds of millions of dollars in revenue, respectively.”
In the fiscal year of 2022, Tingo Group disclosed a cash and cash equivalent amounting to $461.7 million. Subsequent investigations revealed that the total balance in its bank accounts was less than $50.
Mmobuosi has consistently promoted his businesses in various interviews throughout the years.
However, in a recent interview in 2021, he claimed that Tingo boasted an impressive user base of 12 million and a valuation of $6.3 billion.
Additionally, he made multiple statements to various publications regarding his intentions to have Tingo listed on the New York Stock Exchange by 2021.
Interestingly, the truth behind these claims is quite different. Contrary to Mmobuosi’s assertions, Tingo was actually listed on the Nasdaq through a series of reverse mergers, which were allegedly based on falsified financial information.
This listing on the Nasdaq provided Mmobuosi and his companies with access to American investors and capital.
Shockingly, U.S. prosecutors have alleged that Mmobuosi managed to embezzle an estimated $16 million from the Tingo Group.
The grand claims that supported the house of cards quickly crumbled, leading to its short-lived existence.
Tingo’s financials and operations were brought into question by a report from Hinderburg Research, a notorious American short seller, which labeled it as a massive fraud.
As a result, on December 18, the SEC initiated an investigation into the company and suspended trading of Tingo’s shares. In response, Mmobuosi temporarily stepped down just two days later.
