US Court Bars Nigerian Billionaire From Stock Trading, Imposes $250m Fine Against Him, Firms
- A US court has slammed Nigerian billionaire Dozy Mmobuosi and his firm with a $250m fine
- The US SEC disclosed that Mmobuosi and the Tingo Group were fined in securities and fraud default judgement
- The SEC said that the Nigerian and his firms were also barred from trading in stocks in the US
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The United States Securities and Exchange Commission (SEC) says Dozy Mmobuosi, the ex-chief Executive Officer (CEO) of Tingo Group and three firms affiliated with him have been ordered to pay over $250 million in monetary relief in an alleged securities fraud suit default judgment.
Jesse M. Furman, a US Judge, gave the default judgment and said the Nigerian billionaire and his companies did not respond to an SEC lawsuit accusing them of cooking their financial books.
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SEC barres Mmobuosi from stock trading
The SEC said in a statement on August 29, 2024, that a US district court for the southern district of New York entered a final judgment against Mmobuosi and his three US-based entities, the Tingo Group Inc, including Agri-Fintech Holdings Inc., and Tingo Holdings Inc, on August 28, 2024.
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The US stock market regulator accused the Nigerian of a multi-year scheme to inflate the financial performance metrics of his firms and key operating subsidiaries to defraud investors globally.
Legit.ng earlier reported that the SEC charged Mmobuosi for providing false information to investors and orchestrating fraud.
The charge led to Mmobuosi temporarily stepping down as Tingo Group’s co-CEO after the SEC suspended trading in Tingo Group’s securities.
Mmobuosi and affiliated firms were fined
According to TheCable, the SEC also barred Mmuobosi from serving as a public company director, promoting penny stocks, or participating in the trading of any security.
Also, the regulator said Mmobuosi, Tingo Group and its affiliated firms were barred from violating the anti-fraud provisions of the SEC Act of 1933, violating the reporting books and records, and internal control provisions of the Exchange Act of 1934, and the Act Rules.
According to the report, the commission said Tingo International and Mmobuosi were asked jointly and severally to pay a disgorgement of $156.67 million and a prejudgment interest of $20.19 million.
Mmobuosi gets the heaviest fines
It also ordered the disgorgement to cancel all shares of Agri-Fintech stock that Tingo International and Mmobuosi own.
It slammed the agri-tech firm with a $574,682.90 fine and to disgorge for cancellation all shares of Tingo and stock that it and Mmobuosi own.
The SEC also asked Mmobuosi to pay a disgorgement of $27.6 million with prejudgment interest of over $2 million, $204 million to disgorge for cancelling a promissory note insured to his benefit against Tingo Group, and a civil penalty of over $31 million.
Mmobuosi denies all allegations
Legit.ng previously reported that Mmobuosi said allegations of infractions against his business interests are unfounded.
The billionaire and chairman of Tingo Group spoke in Lagos recently at the Tingo House.
During a press conference, Mmobuosi said Western powers saw his success as an African entrepreneur as a threat.
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Source: Legit.ng
