The complaint alleges that Oyebola provided false information to the auditor of one Tingo entity and assisted Mmobuosi in hiding the authenticity of the fake audit reports. This cooperation reportedly allowed Mmobuosi to inflate financial performance metrics over several years, defrauding investors worldwide.
The Securities and Exchange Commission (SEC) has filed charges against Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), for their alleged role in a substantial securities fraud scheme orchestrated by businessman Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, along with three related companies he controlled, collectively referred to as the Tingo entities. Recently, the SEC secured a $250 million judgment against Mmobuosi and the Tingo companies.
According to the SEC's complaint, Oyebola and his firm failed to act when they discovered that Mmobuosi and the Tingo entities had created fraudulent audit reports using Oyebola's signature. These counterfeit documents were submitted in SEC filings, misleading investors and regulators into believing they were legitimate.
The SEC’s complaint, filed on Dec. 18, 2023, alleges that, since at least 2019, Mmobuosi spearheaded a scheme to fabricate financial statements and other documents of the three entities, Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc. and their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC. The complaint further alleges that Mmobuosi made and caused the entities to make material misrepresentations about their business operations and financial success in press releases, periodic SEC filings, and other public statements.
In a significant development in Nigeria, the Nigeria Police Force has officially exonerated Tingo Foods, Tingo Mobile Plc, and their founder, Mr. Dozy Mmobuosi, from any allegations of fraud, including the diversion of funds and misrepresentation of financial reports. The police investigation found no evidence linking the company or its founder to the alleged crimes.
According to the Abuja City Journal, this conclusion was outlined in a legal advisory sent to Inspector General of Police Mr. Kayode Egbedokun by the Commissioner of Police for Legal/Prosecution at the Force Criminal Investigation Department (FCID) in Abuja. The inquiry was initiated following a petition from Mr. Olayide Ayoola, the acting managing director of Tingo, who had accused former employees Stephen Okafor and Rose Ifedi of engaging in fraudulent activities that reportedly jeopardized the company’s financial integrity.
Meanwhile, back in the United States, the SEC's complaint alleges that Oyebola provided false information to the auditor of one Tingo entity and assisting Mmobuosi in hiding the authenticity of the fake audit reports. This cooperation reportedly allowed Mmobuosi to inflate financial performance metrics over several years, defrauding investors worldwide.
“As alleged, Oyebola and his firm violated the public trust and abdicated their responsibilities as public company accountants and auditors by helping Mmobuosi and the Tingo entities effectuate and conceal their fraud,” said Antonia M. Apps, Director of the SEC’s New York Regional Office. “We will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth.”
Tingo International and Mmobuosi were ordered jointly and severally to pay disgorgement of $156,672,705.86 with prejudgment interest of $20,193,871.58, and to disgorge for cancellation all shares of Agri-Fintech stock that Tingo International and Mmobuosi own. Agri-Fintech and Mmobuosi are ordered jointly and severally to pay disgorgement of $12,164,000.00 with prejudgment interest of $574,682.90 and to disgorge for cancellation all shares of Tingo Group stock that Agri-Fintech and Mmobuosi own. Mmobuosi is also ordered to pay disgorgement of $27,632,627.93 with prejudgment interest of $2,032,811.14, to disgorge for cancellation the $204,000,000.00 promissory note inuring to his benefit against Tingo Group, and a civil penalty of $31,908,704.21. Tingo Group, Agri-Fintech, and Tingo International are also ordered to pay a civil penalty of $1,152,314.00 each.
The SEC's lawsuit, filed in the U.S. District Court for the Southern District of New York, accuses Oyebola and his firm of aiding and abetting violations of federal securities laws, specifically those concerning fraud. Oyebola is also charged with helping Mmobuosi mislead auditors. The SEC is seeking civil penalties, as well as permanent injunctions to bar Oyebola and his firm from auditing U.S. public companies or assisting in the preparation of financial statements filed with the SEC.
The ongoing investigation is led by a team from the SEC's New York Regional Office, and the agency has expressed gratitude for the assistance of the Israel Securities Authority. This case highlights the SEC's commitment to addressing and penalizing fraudulent activities in the financial sector.
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