In a startling sequence of events, Tingo Group, a once-thriving fintech entity, is now caught in the throes of a deepening crisis. The latest blow comes as the company’s CEO, Dozy Mmobuosi, faces serious fraud charges filed by the US Securities and Exchange Commission (SEC). This development marks the culmination of a series of allegations, regulatory interventions, and market turbulence, spelling out a grim narrative for the embattled company.
The saga began on June 6, 2023, when Hindenburg Research, a reputable short seller, released a damning report that pierced through the veneer of Tingo Group’s success. The report alleged financial improprieties, casting doubt on the legitimacy of Tingo’s reported user base, pointing to licensing irregularities, and raising questions about the veracity of the company’s financial practices.
The aftermath of Hindenburg’s revelations was swift and brutal. Tingo Group’s stock prices plummeted by an alarming 60%, triggering a seismic shock in the market. Investors, once optimistic about the fintech giant’s future, found themselves facing unprecedented uncertainty, with growing concerns over the integrity of their investments.
In response to these grave allegations, Tingo Group’s independent directors took a proactive stance. On August 30, 2023, they initiated a comprehensive internal investigation, enlisting the expertise of independent counsel and a top-tier legal firm to scrutinize the claims made by Hindenburg Research. The company aimed to address the allegations head-on and provide clarity to stakeholders amid the escalating crisis.
However, matters took a decisive turn on November 14, 2023, when the US Securities and Exchange Commission (SEC) stepped in, suspending trading in Tingo Group and its subsidiary, Agri-Fintech Holdings. The SEC cited concerns regarding the adequacy and accuracy of publicly available information, casting a dark shadow over the company’s operations.
The climax of Tingo Group’s ordeal has now unfolded with the SEC filing charges of “massive fraud” against CEO Dozy Mmobuosi. The charges allege Mmobuosi orchestrated a scheme to fabricate financial statements and engage in fictitious transactions through Nigerian subsidiaries, totaling billions of dollars.
Charles Rapulu Udoh is a Lagos-based lawyer, who has several years of experience working in Africa’s burgeoning tech startup industry. He has closed multi-million dollar deals bordering on venture capital, private equity, intellectual property (trademark, patent or design, etc.), mergers and acquisitions, in countries such as in the Delaware, New York, UK, Singapore, British Virgin Islands, South Africa, Nigeria etc. He’s also a corporate governance and cross-border data privacy and tax expert. As an award-winning writer and researcher, he is passionate about telling the African startup story, and is one of the continent’s pioneers in this regard