Dozy Mmobuosi, Tingo Group’s CEO.
The company which boasts of being Nigeria’s leading agri-fintech, food processing, and commodity trading outfit, Tingo Group, has ceased activities, having put its website up for sale. This final step marks a significant fall for the once-ambitious enterprise.
According to local reports, Tingo Mobile, which serves as the fintech arm of the group, had already cut ties with contractors earlier in the year. Some of these contractors had not been paid salaries since December 2023, a situation which served as a prefiguration of the group’s broader collapse, compounded by legal and regulatory challenges abroad.
In September 2024, the United States District Court for the Southern District of New York ruled against Nigerian entrepreneur Dozy Mmobuosi and his associated companies: Tingo Group, Inc., Agri-Fintech Holdings, Inc., and Tingo International Holdings. This damning judgement followed charges brought by the U.S. Securities and Exchange Commission (SEC) accusing the defendants of extensive violations of U.S. securities laws and fraudulent practices.
The SEC’s complaint, filed in December 2023, outlined a range of fraudulent activities, including violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, which address fraudulent conduct in securities transactions. It also cited breaches of Section 17(a) of the Securities Act of 1933, which prohibits fraud in the offer or sale of securities.
The defendants failed to respond to the above-mentioned charges, a development which led to a default judgement in June 2024, before Judge Jesse M. Furman delivered a final judgement on August 28, 2024. The court permanently enjoined Mmobuosi and his companies from violating key provisions of U.S. securities laws.
The judgment imposed brutal penalties, including:
- Permanent Injunctions: Mmobuosi and his companies are permanently barred from engaging in fraudulent practices, maintaining inaccurate financial records, and falsifying statements related to securities.
- Officer and Director Ban: Mmobuosi is prohibited from serving as an officer or director of any publicly traded company in the United States.
- Penny Stock Bar: The court permanently banned Mmobuosi from participating in penny stock offerings, a sector prone to speculative and fraudulent activities.
- Disgorgement of Profits: The judgment ordered Mmobuosi and Tingo International Holdings to disgorge $251,179,403.62 in illicit profits. Additionally, Mmobuosi must forfeit a $204 million promissory note owed by Tingo Group.
- Stock Cancellation: Shares in Agri-Fintech owned or controlled by Mmobuosi and Tingo International Holdings were ordered to be canceled, curtailing his influence in the company.
The SEC had always been extremely focused on ensuring international entrepreneurs adhere to U.S securities regulations, a fact exemplified by this ruling. This judgement spells the end for Mmobuosi’s operations in the U.S financial markets, delivering the coup de grace to his business empire. Once touted to be a potential leader in Fintech and agritech, Tingo Group has now reached the end of the line after its finances collapsed amid legal battles.
The court’s judgment is also a way of sending a clear message to executives and companies operating in U.S. markets that adherence to regulatory standards is non-negotiable. Beyond the immediate penalties, the case could prompt further investigations into Mmobuosi’s dealings in other jurisdictions, as international regulators take notice of the SEC’s findings.
