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Tingo Group CEO Steps Down Temporarily Amid SEC Fraud Charges 2023
Tingo Group (TIO.O) announced on Wednesday that Nigerian businessman Dozy Mmobuosi has temporarily resigned as interim co-CEO of the fintech firm. This decision follows the U.S. Securities and Exchange Commission (SEC) filing charges, accusing Mmobuosi and three companies under his leadership of inflating financial performance to deceive investors. The charges specifically highlight fraudulent practices within the companies and their key subsidiaries.
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Ken Denos has been appointed interim co-CEO of Tingo Group until further notice, as announced by the company on Wednesday.
In June, Tingo Group’s shares experienced a decline following criticism from short-seller Hindenburg Research. The report accused the fintech firm’s founder of wrongdoing and claimed that its financials were “fabricated.”
Tingo unequivocally denied all allegations in the report, labeling it as containing “misleading and libelous content.” The company has taken proactive measures by engaging a law firm to conduct an independent review of Hindenburg’s claims.
PRESS RELEASE OF SEC
The Securities and Exchange Commission has taken swift action, securing a temporary asset freeze and restraining order, along with emergency relief measures against Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi. This move is in connection with an alleged multi-year scheme aimed at inflating financial performance metrics to deceive global investors.
The SEC’s complaint, filed on December 18, 2023, contends that since at least 2019, Mmobuosi orchestrated a scheme to fabricate financial statements and documents for three entities: Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc., along with their Nigerian subsidiaries. The complaint asserts that Mmobuosi, as CEO, disseminated misleading information about their business operations and financial success through press releases, SEC filings, and public statements.
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For instance, Tingo Group’s fiscal year 2022 Form 10-K, filed in March 2023, reported a cash balance of $461.7 million in Tingo Mobile’s Nigerian bank accounts. However, the SEC alleges that the actual combined balance was less than $50. The complaint also accuses Defendants of fabricating customer relationships to support their purported businesses.
According to the SEC, Mmobuosi and the entities he controls fraudulently obtained hundreds of millions through these schemes. The complaint further alleges that Mmobuosi diverted funds for personal gain, including luxury car purchases, private jet travel, and an unsuccessful attempt to acquire an English Football Club Premier League team.
Antonia M. Apps, Regional Director of the SEC’s New York Regional Office, commented, “Mmobuosi spearheaded a brazen scheme using phony records to make the Tingo companies appear highly profitable, deceiving investors for personal gain. We filed this emergency action to expose Mmobuosi’s fraud, hold him accountable, and protect investors from further harm.”
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges all four Defendants with violating federal securities laws. It also brings additional charges against Nasdaq-listed Tingo Group, OTC-traded Agri-Fintech, and Mmobuosi for reporting, books and records, and internal controls violations. The SEC seeks permanent injunctive relief, disgorgement of ill-gotten gains, civil penalties, and the return of bonuses and profits obtained by Mmobuosi. Additionally, it aims to restrict Mmobuosi from acting as an officer or director of a public company or participating in the offering of any penny stock.
The SEC’s ongoing investigation involves a dedicated team from the New York Regional Office, appreciating collaboration from Nasdaq’s Enforcement Department, the U.K. Financial Conduct Authority, and the Israel Securities Authority.
Who is the interim ceo of tingo group
Ken Denos steps in as Tingo Group’s interim CEO following Dozy Mmobuosi’s temporary leave amid SEC fraud charges. Denos will hold the position until further notice.