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Dozy Mmobuosi

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Dozy Mmobuosi
Dozy Mmobuosi pictured in 2021
Born
Lagos, Nigeria
Websitedozymmobuosifoundation.com

Dozy Mmobuosi, is a Nigerian businessman, and tech entrepreneur. An advocate for technological advancement in Africa,[1] he is the founder and former CEO of Tingo Inc.[2][3]

In 2023, the US Securities and Exchange Commission filed charges against him saying he had been attempting to defraud investors by inflating Tingo companies’ financial performance figures.[4][5] On 2 January 2024, Mmobuosi was charged in the US with securities fraud, making false filings with the SEC, and conspiracy charges.[6] In September 2024, a US district court ordered Mmobuosi and his three entities to pay a fine of $250mn as final judgement by default following the SEC civil complaint.[7]

Early life and education

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Mmobuosi was born in Lagos, Nigeria. He claims he received a Bachelor of Science degree in political science from Ambrose Alli University in Ekpoma, Edo State. He also claims he received his Master of Science degree in economics from the same university.[8] He also claims he received a doctorate degree in rural advancement from University of Putra, Malaysia in 2007,[9] although Hindenburg Research, a short-selling activist group, was not able to verify this in their June 2023 report.[10] In March 2022, Mmobuosi completed the Advanced Management and Leadership Programme at Saïd Business School, University of Oxford.[11][12]

Career

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In 2001, Mmobuosi founded Tingo Mobile to provide mobile technology and Fintech solutions to rural communities in Nigeria.[13] In 2015, Mmobuosi founded Tingo Inc., a publicly traded company on the OTC Markets Group. In January 2019, Mmobuosi launched Nwassa, a digital Agri-Marketplace that is Africa’s first agricultural technology and digital platform.[14][15][16]

In December 2022, Mmobuosi unveiled the Dozy Mmobuosi Leadership Centre (DMLC), housed in Oxford, United Kingdom, with the aim of developing African leaders skills to help them transform their private and public sector services.[17][18] In February 2023, it was reported that Mmobuosi was close to completing a £90 million takeover of English football club Sheffield United,[19][20][21] reportedly paying a near-£10 million non-refundable deposit for the financially troubled club,[22] but Mmobuosi later discontinued his bid and was planning to set up a new football club in Lagos called Club 1472.[23] Amid his attempted Sheffield United takeover, it was reported that Mmobuosi had been sued in the US and UK over unpaid debts; in a $300,000 Connecticut lawsuit, Mmobuosi was sued by a Tingo Mobile executives for failing to pay wages for at least half a year's work; in February 2022, a UK court ordered Tingo International Holdings Inc. to pay a UK property firm £87,000 ($105,000) in unpaid rent for a home he used as his private residence in Radlett near London.[24]

In June 2023, NASDAQ-listed shares in Tingo Group plunged in value after a report from short seller Hindenburg Research said the company was an "exceptionally obvious scam".[25] The company denied the Hindenburg report claims, which it said contained "errors of fact" and "misleading and libellous content",[26] and appointed lawyers White & Case to review the report's claims.[27] In November 2023, dealing in Tingo and Agri-Fintech Holdings shares was suspended by the SEC over concerns about the accuracy of information about the companies.[28] Almost three months later, Tingo Group declared itself innocent of Hindenburg's allegations based on an investigation by its own outside counsel "and further investigative work of its own".[29] Hindenburg described Tingo's claims as "brazen and obvious fabrications".[30] On 18 September 2023, Tingo Group appointed Mmobuosi and Kenneth Denos interim Co-CEOs.[31]

On 13 November 2023, the US Securities and Exchange Commission halted trading in Tingo Group shares[32] and those of related entity Agri-Fintech Securities[33] after finding inaccuracies in their disclosures.[28] The SEC asserted there were "questions and concerns regarding the adequacy and accuracy of publicly available information in the marketplace ... since at least May 10, 2022, about the financial statements and business operations of Tingo Group and its wholly-owned subsidiaries, including Tingo Mobile Ltd,"[33] and "since at least February 9, 2023, about the financial statements and business operations of its wholly-owned subsidiary, Tingo Foods PLC."[32] While the SEC suspension of shares expired in late November, Nasdaq chose to keep trading of Tingo securities halted pending a review of provided information.[34] Tingo shares traded as high as $5.45 in May, before the Hindenburg report, then slumped to $0.69 prior to suspension.[35]

Fraud allegations

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In December 2023, the SEC announced three charges against Mmobuosi and three US-based entities: Tingo Group Inc, Agri-Fintech Holdings Inc and Tingo International Holdings Inc, alleging fraudulent financial claims to defraud investors. As an example, the SEC said Tingo Group’s fiscal year 2022 Form 10-K reported a balance of $461.7m in various bank accounts while allegedly only having a combined balance of less than $50 at the end of the year.[5] However, the alleged fraud's roots "date back years", beginning in at least 2019 with Mmobuosi said by the SEC to have "created fake financial statements and forged supporting material to falsely portray Tingo Mobile as a thriving and profitable enterprise with hundreds of millions of annual revenue, profit and available cash.... In reality, throughout 2019, the company had no meaningful operations or customers and about $15 in its bank account."[36] The SEC's 72-page complaint also outlines allegedly fraudulent transactions involving Tingo Mobile in December 2022 and Tingo Foods in February 2023.[36] Auditor Deloitte had given the firm a clean, unqualified audit for its 2022 accounts, leading Hindenburg to question if the firm had "missed or rushed through procedures".[37] The SEC alleged Mmobuosi siphoned hundreds of millions of investors' money for his personal benefit.[5][38]

On 20 December 2023, Tingo Group said Mmobuosi was temporarily stepping down as interim co-CEO of the fintech firm following the SEC charges.[39]

On 2 January 2024, Mmobuosi was charged in the US with securities fraud, making false filings with the SEC, and conspiracy charges;[6][40] the three charges carry a maximum sentence of 45 years.[41] In a statement, Mmobuosi said the allegations were unfounded and he was "preparing to contest them to the full extent of his capacity".[42][43] By March 2024, Mmobuosi, living in the UK, had given numerous interviews to journalists in Nigeria denying the fraud allegations. Meanwhile, Sheffield United's owner Prince Abdullah was seeking legal advice on whether he might have to give Mmobuosi's deposit to US authorities as the proceeds of crime.[22]

In September 2024, a US district court in New York ordered Mmobuosi and his three entities to pay a fine of $250mn as final judgement by default after his defence failed to make any representation or provide documents against the civil complaint filed by the SEC. Mmobuosi did not enter into any plea or defend the case in court.[7][44] However, after the verdict, he insisted the SEC had made baseless and outrageous accusations against him and Tingo, aware that the defendants lacked the financial resources to mount a rigorous defence. He also said the SEC had ignored critical evidence, notably a report from the Nigerian inspector general of police that, Mmobuosi said, verified the legitimacy of Tingo's operations.[45][46]

References

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  1. ^ Ajayi, Omokolade (2022-02-22). "Nigerian founder Dozy Mmobuosi's Tingo moves to raise $500 million, market cap soars above $7.6 billion". Billionaires.Africa. Retrieved 2022-06-16.
  2. ^ "Nigeria's Tingo Mobile says it is about to list on three stock exchanges". TechCabal. 2016-02-17. Retrieved 2022-06-09.
  3. ^ "How Tingo Is Using Agri-Fintech To Change Farming in Africa". Forbes Africa. 2021-12-17. Retrieved 2022-06-09.
  4. ^ Davies, Rob (19 December 2023). "Businessman who tried to buy Sheffield United accused of 'elaborate' fraud". The Guardian. Retrieved 19 December 2023.
  5. ^ a b c "U.S. SECURITIES AND EXCHANGE COMMISSION Litigation Release No. 25913". SEC.gov. U.S. SECURITIES AND EXCHANGE. Retrieved 30 December 2023.
  6. ^ a b "Founder And Former CEO Of Tingo Companies Charged With Securities Fraud". U.S. Attorney's Office, Southern District of New York. Retrieved 3 January 2024.
  7. ^ a b "Nigerian fintech chief fined $250mn after holdings described as a 'fiction'". www.ft.com. Retrieved 2024-09-09.
  8. ^ "How Dozy Mmobuosi went from University show promoter to running a global company". Vanguard News. 2020-05-02. Retrieved 2022-06-16.
  9. ^ Okogba, Emmanuel (2020-05-02). "How Dozy Mmobuosi went from University show promoter to running a global company". Vanguard News. Retrieved 2022-08-24.
  10. ^ "Tingo Group: Fake Farmers, Phones, and Financials—The Nigerian Empire That Isn't". Hindenburg Research. 6 June 2023.
  11. ^ Ogwo, Charles (2022-12-12). "Dozy Mmobuosi: Entrepreneur building Africa's largest agrifintech". Businessday NG. Retrieved 2023-02-02.
  12. ^ "Tech entrepreneur Dozy Mmobuosi is changing Africa's agricultural sector through innovation – THISDAYLIVE". www.thisdaylive.com. Retrieved 2023-02-02.
  13. ^ "Tech entrepreneur Dozy Mmobuosi is changing Africa's agricultural sector through innovation". www.gq.co.za. Archived from the original on 2023-02-02. Retrieved 2023-02-02.
  14. ^ "How Tingo Mobile is connecting African farmers to the world with Nwassa". Techpoint Africa. 2019-05-09. Retrieved 2022-06-09.
  15. ^ Okeke, Ifeoma (2020-10-18). "Nwassa has potential to become one-stop-shop for African agribusiness – Mmobuosi". Businessday NG. Retrieved 2022-08-24.
  16. ^ "TMNA | Tingo Inc. Stock Overview (U.S.: OTC)". Barron's. Retrieved 2022-08-24.
  17. ^ Release, Press (2022-12-29). "Technology entrepreneur, Dozy Mmobousi to launch the Dozy Mmobuosi Leadership Centre with Rt. Hon. Mark Simmonds as Chair". Premium Times Nigeria. Retrieved 2023-02-02.
  18. ^ "Entrepreneur, Mmobousi to launch Dozy Mmobuosi Leadership Centre in UK". The Guardian Nigeria News - Nigeria and World News. 2022-12-29. Archived from the original on 2023-02-02. Retrieved 2023-02-02.
  19. ^ Lawton, Matt. "Nigerian billionaire Dozy Mmobuosi's Sheffield United takeover close". ISSN 0140-0460. Retrieved 2023-02-02.
  20. ^ King, Kieran (2023-02-02). "African billionaire worth £7bn to move into English football with takeover close". mirror. Retrieved 2023-02-02.
  21. ^ Dozy Mmobuosi: Nigerian businessman on the cusp of buying Premier League-bound Sheffield United - CNN Video, retrieved 2023-03-21
  22. ^ a b Slater, Matt (26 March 2024). "'Under every rock, we found a lie': How the bid to be English football's first black owner unravelled". The Athletic. Retrieved 15 April 2024.
  23. ^ Hemmingham, Nathan (7 November 2023). "Dozy Mmobuosi unveils new club after failed Sheffield United takeover attempt". Yorkshire Live. Retrieved 5 January 2024.
  24. ^ Asifa, Inimfon (17 February 2023). "Nigerian businessman Dozy Mmobuosi sued in UK and US over debts". Nairametrics. Retrieved 5 January 2024.
  25. ^ Quinio, Akila; Adeoye, Aanu; Kerr, Simeon (6 June 2023). "Shares in fintech Tingo slump after Hindenburg takes short position". Financial Times. Retrieved 24 July 2023.
  26. ^ Whitehouse, David (12 June 2023). "Nasdaq-listed Tingo denies 'scam' claims from short-seller Hindenburg Research". Africa Report. Retrieved 24 July 2023.
  27. ^ "Tingo Group Engages Independent Counsel to Conduct Review of Assertions Made in Short-Seller Report". Yahoo Finance. 8 June 2023. Retrieved 24 July 2023.
  28. ^ a b "SEC suspends trading of Tingo shares due to "lack of accurate" information". Semafor. 14 November 2023. Retrieved 1 January 2024.
  29. ^ Augustine, Abraham (1 September 2023). "Tingo Group waves aside Hindenburg allegations as it announces ~$1 billion in H12023 revenue". TechCabal. Retrieved 1 January 2024.
  30. ^ "9/5/2023 Update: Further Response To Tingo's Absurd Claims And Obfuscation From The Company's September 1st Release". Hindenburg Research. Retrieved 1 January 2024.
  31. ^ Mendonça, Elaine (2023-09-18). "Tingo Group Announces Change in Leadership and Board Appointments". Best Stocks. Retrieved 2023-09-18.
  32. ^ a b "SECURITIES EXCHANGE ACT OF 1934 Release No. 34-98920 / November 13, 2023" (PDF). Securities and Exchange Commission. SEC. Retrieved 2 January 2024.
  33. ^ a b "SECURITIES EXCHANGE ACT OF 1934 Release No. 34-98921 / November 13, 2023" (PDF). Securities and Exchange Commission. SEC. Retrieved 2 January 2024.
  34. ^ "Turbulence Continues: Nasdaq Keeps Tingo Group Further Suspended Amid New Query". Afrikan Heroes. 30 November 2023. Retrieved 2 January 2024.
  35. ^ Whitehouse, David (19 December 2023). "Tingo, Dozy Mmobuosi US SEC charges highlight value of stock market short-sellers". The Africa Report. Retrieved 2 January 2024.
  36. ^ a b "SEC complaint Case 1:23-cv-10928 Document 1 Filed 12/18/23" (PDF). Securities and Exchange Commission. Retrieved 2 January 2024.
  37. ^ Adeoye, Aanu; Quinio, Akila (18 December 2023). "SEC charges fintech Tingo chief with 'massive' fraud after Hindenburg short position". Financial Times. Retrieved 1 January 2024.
  38. ^ Adeoye, Aanu; Quinio, Adila; Aliaj, Ortenca (24 December 2023). "'A fiction': the fall of a fintech star accused of 'massive fraud'". Financial Times. Retrieved 31 December 2023.
  39. ^ "Tingo Group CEO temporarily steps down after US SEC charges". Reuters. 20 December 2023. Retrieved 1 January 2024.
  40. ^ "Tingo Group Founder Hit by Hindenburg Now Charged Criminally". Bloomberg Law. 2 January 2024. Retrieved 3 January 2024.
  41. ^ Olowogboyega, Olumuyiwa (3 January 2024). "Tingo Founder Dozy Mmobuosi charged with securities fraud in the U.S". TechCabal. Retrieved 3 January 2024.
  42. ^ Aduloju, Bunmi (4 January 2024). "'It's unfounded' - ex-Tingo CEO rejects US 'fraud' charges". The Cable. Retrieved 5 January 2024.
  43. ^ Eleanya, Frank (4 January 2024). "Dozy Mmobuosi denies US fraud allegation, prepares legal defense". Business Day. Retrieved 5 January 2024.
  44. ^ Jaiyeola, Temitayo (2 September 2024). "US court orders Tingo CEO to pay $250m fine". Business Day. Retrieved 15 September 2024.
  45. ^ Oni, Aderonke (2 September 2024). "US court verdict a miscarriage of justice, says Mmobuosi on $250m fine". The Cable. Retrieved 15 September 2024.
  46. ^ Muaz, Hassan (2 September 2024). "Nigerian businessman speaks after $250m US court fine". The Eagle. Retrieved 15 September 2024.
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