Tingo's Dozy Mmobuosi charged with securities fraud

Key Takeaways

In 2022, Tingo Group reported having cash and cash equivalents amounting to $461.7 million for the fiscal year. However, investigations later revealed that its bank accounts held less than $50 in total. Mmobuosi allegedly inflated the success of his businesses in various interviews, claiming in 2021 that Tingo had 12 million users and a valuation of $6.3 billion. He also spoke of plans to list on the New York Stock Exchange by 2021. Contrary to these assertions, Tingo was listed on the Nasdaq after a series of reverse mergers, allegedly based on fabricated financials. This Nasdaq listing provided Mmobuosi and his companies with access to U.S. investors and capital. U.S. prosecutors assert that Mmobuosi was able to divert an estimated $16 million from Tingo Group. The credibility of these claims quickly unraveled when Hinderburg Research, a well-known American short seller, released a report questioning Tingo's financials and operations, branding it a massive fraud. Following this, on December 18, the SEC announced an investigation into the company, leading to the suspension of trading in Tingo's shares. Subsequently, two days later, Dozy Mmobuosi temporarily stepped down from his role.