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SEC Charges in Fraud Scheme

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.

Multi-Year Scheme Unveiled: SEC Files Charges

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 asserts 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.

Multi-Year Scheme Unveiled: SEC Files Charges

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 asserts 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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