US court verdict a miscarriage of justice, says Mmobuosi on $250m fine

Dozy Mmobuosi, the founder of Tingo Group, has faulted the judgment by a United States (US) court following allegations made by the country’s Securities and Exchange Commission (SEC) against him.

Mmobuosi, in a statement on Monday, said the judgment is malicious and a miscarriage of justice.

On September 1, the US SEC said Mmobuosi, and three companies affiliated to him, have been ordered by a court to pay over $250 million in monetary relief in a securities fraud suit default judgment.

Delivering the judgment, Jesse M. Furman, a US judge, said Mmobuosi and his companies failed to respond to a SEC lawsuit accusing them of overstating financial results.

Reacting to the verdict, Mmobuosi claimed that the US SEC made baseless and outrageous accusations against him and Tingo, fully aware that they would not be met with a strong challenge.

The businessman said the US agency’s allegations were not driven by “any real evidence” but by the knowledge that the defendants lacked the financial resources to mount a rigorous defence.

“Whilst I do not attest to be a saint, I can unequivocally state that the SEC has gone to great lengths to tarnish the hard work and aspirations of so many people – from those at board level to junior staff working in the rural communities in Nigeria,” Mmobuosi said.

“The SEC have contrived a corporate Serengeti with the aim of creating a torrent of chaos within the business and sit back as we tear ourselves apart.

“Upon filing their civil claim, the SEC forthwith cut off the lifeblood of the business as they froze all our resources and effectively left the business in a comatose state.

“They levied spurious and egregious allegations at us knowing that they would not be forcefully opposed — not because of any supposed substance to their allegations but because they were (and indeed still are) acutely aware that the defendants would not be able to raise the necessary funds to mount a rigorous defence.”

‘SEC WITHHOLDING REPORT BY NIGERIA POLICE’

The Tingo Group founder accused the SEC of omitting critical evidence, specifically a report from the Nigerian inspector general of police that verifies the legitimacy of Tingo’s operations.

The entrepreneur criticised the SEC for not cooperating with Nigerian authorities to fully investigate the underlying businesses, which are based in Nigeria.

“As you would observe from the court docket, the SEC has regularly updated the court with regards to correspondence received from the defendants or on their behalf,” he said.

“There appears to be one flagrant omission however. There is no mention of the police report from the Nigerian inspector general of police’s office, which is in their possession.

“For the sake of clarity, the inspector general of police for the federal republic of Nigeria is the head of the Nigeria police force and their report could be easily verified.

“It is therefore unconscionable and indefensible that the SEC would choose to withhold this from the court.

“Rather than working with the authorities in Nigeria to thoroughly investigate the underlying businesses (which are domiciled in Nigeria), they appear to view them as irritants.

“In its findings, the Nigeria police force confirmed the bonafides of Tingo. As you would have observed, the all farmers association of Nigeria have severally mounted a staunch defence of our business, because we have been at the forefront of promoting and supporting farming and agriculture in Nigeria.

“This is an organisation that has been unwavering in its support despite all the negative media coverage and this is due to the fact that they value the impact our business has had on the lives of everyday farmers in Nigeria.”

MMOBUOSI REAFFIRMS DEDICATION TO COMPANY’S VISION AMID ALLEGATIONS 

Mmobuosi reaffirmed his commitment to Tingo’s vision, stating that the company has been a beacon of hope for many communities and to those who have been undervalued and marginalised.

“I also wish to reiterate that an offer was made to the management of Tingo Group, for a buyout and I will continue to encourage this proposed buyout,” he added.

“This is a critical step for me because you have all invested in our vision and I remain committed to the safeguarding of your interests.”

On December 18, 2023, the SEC charged Mmobuosi for providing “false information to investors,” and “orchestrating a staggering fraud”.

Two days later, Mmobuosi temporarily stepped down as Tingo Group’s co-CEO.

A month before he stepped down, the SEC suspended trading in the securities of Tingo Group.