The
US Securities and Exchange Commission (SEC) has filed charges against
Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, and three affiliated
entities: Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo
International Holdings Inc. The charges stem from an alleged multi-year scheme
to inflate financial performance metrics, with the SEC seeking emergency
relief.
According
to the complaint filed on December 18, 2023, Mmobuosi is accused of
orchestrating a scheme since at least 2019 to fabricate financial statements of
the entities and their Nigerian subsidiaries, Tingo Mobile Limited and Tingo
Foods PLC. The SEC alleges that false information was disseminated through
press releases, SEC filings, and public statements, leading to inflated
financial success claims.
The
complaint further alleges that Mmobuosi fraudulently obtained significant funds
for personal use, including luxury purchases, private jet travel, and an
unsuccessful attempt to acquire an English Football Club Premier League team.
The
SEC’s charges include violations of anti-fraud provisions, reporting, books and
records, and internal controls violations. Mmobuosi faces additional charges of
lying to auditors, insider trading, and failure to disclose stock sales. The
SEC seeks injunctive relief, disgorgement, civil penalties, and the return of
bonuses and profits under the Sarbanes-Oxley Act.
As
part of an emergency application, the SEC seeks a temporary
restraining order freezing Mmobuosi’s assets, prohibiting fund transfers, and
preventing stock sales. The ongoing investigation involves the SEC’s New York
Regional Office, with assistance from Nasdaq’s Enforcement Department.
Alleged Pump-and-Dump Scheme: Action
Against Twitter Influencers
Earlier, Finance Magnates reported that the SEC
charged eight Twitter influencers for orchestrating a pump-and-dump scheme
to manipulate exchange-traded stocks. The influencers, including Perry Matlock,
Edward Constantin, and others, allegedly purchased specific stocks, urged their
followers to do the same, and then discreetly sold the shares at a profit when
prices rose.
Daniel
Knight, the last influencer, faced charges of aiding and abetting the scheme by
co-hosting a podcast that promoted others as expert traders. The SEC described
the influencers as “seasoned stock manipulators” who identified
stocks for manipulation, acquire substantial positions, and recommend them to
followers, ultimately profiting from deceptive promotions. Criminal charges were
also filed by the Department of Justice.
The
US Securities and Exchange Commission (SEC) has filed charges against
Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, and three affiliated
entities: Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo
International Holdings Inc. The charges stem from an alleged multi-year scheme
to inflate financial performance metrics, with the SEC seeking emergency
relief.
According
to the complaint filed on December 18, 2023, Mmobuosi is accused of
orchestrating a scheme since at least 2019 to fabricate financial statements of
the entities and their Nigerian subsidiaries, Tingo Mobile Limited and Tingo
Foods PLC. The SEC alleges that false information was disseminated through
press releases, SEC filings, and public statements, leading to inflated
financial success claims.
The
complaint further alleges that Mmobuosi fraudulently obtained significant funds
for personal use, including luxury purchases, private jet travel, and an
unsuccessful attempt to acquire an English Football Club Premier League team.
The
SEC’s charges include violations of anti-fraud provisions, reporting, books and
records, and internal controls violations. Mmobuosi faces additional charges of
lying to auditors, insider trading, and failure to disclose stock sales. The
SEC seeks injunctive relief, disgorgement, civil penalties, and the return of
bonuses and profits under the Sarbanes-Oxley Act.
As
part of an emergency application, the SEC seeks a temporary
restraining order freezing Mmobuosi’s assets, prohibiting fund transfers, and
preventing stock sales. The ongoing investigation involves the SEC’s New York
Regional Office, with assistance from Nasdaq’s Enforcement Department.
Alleged Pump-and-Dump Scheme: Action
Against Twitter Influencers
Earlier, Finance Magnates reported that the SEC
charged eight Twitter influencers for orchestrating a pump-and-dump scheme
to manipulate exchange-traded stocks. The influencers, including Perry Matlock,
Edward Constantin, and others, allegedly purchased specific stocks, urged their
followers to do the same, and then discreetly sold the shares at a profit when
prices rose.
Daniel
Knight, the last influencer, faced charges of aiding and abetting the scheme by
co-hosting a podcast that promoted others as expert traders. The SEC described
the influencers as “seasoned stock manipulators” who identified
stocks for manipulation, acquire substantial positions, and recommend them to
followers, ultimately profiting from deceptive promotions. Criminal charges were
also filed by the Department of Justice.
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- Source: https://www.financemagnates.com//fintech/sec-charges-dozy-mmobuosi-and-affiliated-entities-in-fraud-scheme/
