US SEC charges former Tingo accountant, Olayinka Oyebola and his firm are charged for allegedly assisting in a large-scale securities fraud.
According to US SEC, this fraud is orchestrated by Tingo Founder Mmobuosi Odogwu Banye (also known as Dozy Mmobuosi) and three related US companies under his control.
The fraud, involving Mmobuosi’s companies, referred to as the Tingo entities, was uncovered following a recent $250 million judgment against him and his firms.
According to the SEC, Oyebola and his firm played a key role in enabling Mmobuosi to deceive investors over several years.
The auditor allegedly allowed fraudulent audit reports, bearing his signature, to be submitted to the SEC as if they were genuine. These falsified reports helped the Tingo entities misrepresent their financial performance. Inflating key metrics and misleading the auditor, regulators, and investors on a global scale.
The SEC’s complaint states that Oyebola not only failed to alert authorities but also made misleading statements to auditors. By helping conceal the fraudulent nature of the reports, Oyebola allowed the scheme to continue for years, causing significant financial harm to investors.
Antonia M. Apps, Director of the SEC’s New York Regional Office, condemned Oyebola’s actions, stating that he violated public trust and enabled the spread of false financial information.
“We will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth.”
What Oyebola and his firm are charged for
The charges against Oyebola and his firm include aiding and abetting violations of antifraud provisions under US securities law, as well as assisting in Mmobuosi’s misrepresentation to auditors.
The SEC is seeking civil penalties and permanent injunctions,. Including a lifetime ban on Oyebola and his firm from auditing US public companies or helping prepare financial statements for SEC filings.
The SEC’s ongoing investigation is being supervised by Tejal D. Shah. And it’s being litigated by David Zetlin-Jones and Mr. DiBattista under the supervision of Alexander Vasilescu, with the assistance of the Israel Securities Authority.
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This case follows a broader crackdown on the fraudulent activities of Mmobuosi, whose business empire, including two Nasdaq-listed companies, Tingo Group and Agri-Fintech Holdings, was exposed as largely fictional.
The SEC’s investigation revealed that the claimed assets, revenues, and customer base of the Tingo entities were almost entirely fabricated.
The ongoing investigation continues with contributions from SEC officials and international agencies.
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