
Dozy Mmobosi, founder of Tingo Group faces a 45-year prison sentence. Prosecutors in the U.S. have finally disclosed some information details about the criminal charges against the founder of Tingo Group, Odogwu Dozy Mmobuosi, who is also the CEO. Tingo Group is an “agri-fintech” startup that has been listed on Nasdaq. The CEO, Mmobuosi has been accused of falsely reporting revenues and assets amounting to hundreds of millions of dollars for three companies under his control.
The charges against him include conspiracy, securities fraud, and false filings with SEC (Securities and Exchange Commission). These three charges are said to have a maximum of 45 years prison sentence.
According to the statement against Mmobuosi, he “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.”
Tingo Group in 2022 reported a cash equivalent of $461.7 million for the fiscal year. After investigations, it was revealed that its bank accounts had less than $50 combined.
Mmobuosi supported his businesses over the years in interviews and in 2021, he reportedly told one publication that Tingo had 12 million users and a valuation of about $6.3 billion. He also made various publications to be aware of his plans to list Tingo on the New York Stock Exchange by 2021.
In truth, Tingo is reportedly listed on the Nasdaq after a series of reverse mergers which is alleged to be based on fake financials. Tingo being listed on the Nadaq gave Mmobuosi and his companies access to US investors and considerable capital. Mmuobuosi’s U.S. prosecutors say he was able to take away about $16 million from Tingo Group.
It was a report from Hinderburg Research that brought Tingo’s financials and operations into question, labeling it a huge fraud. On December 18th, the SEC carried out an investigation into the company and suspended trading in Tingo’s shares. After two days of the investigation, Dozy Mmobuosi stepped down temporarily as CEO. The 45-year prison sentence could obviously be shortened but we have to wait for further investigations, trials, and ultimately, the sentence.