US SEC charges Nigerian auditor for role in Mmobuosi/Tingo ‘fraud scheme’

The United States (US) Securities and Exchange Commission (SEC) has charged Olayinka Oyebola, a Nigerian auditor, for allegedly aiding and abetting securities fraud reportedly carried out by Mmobuosi Odogwu Banye, the former chief executive officer (CEO) of Tingo Group, and three companies controlled by him.

In a statement on Monday, the SEC also charged Oyebola’s accounting firm, Olayinka Oyebola & Co. (chartered accountants), registered with the public company accounting oversight board (PCAOB).

“The Securities and Exchange Commission today charged Olayinka Oyebola and his Public Company Accounting Oversight Board-registered accounting firm, Olayinka Oyebola & Co. (Chartered Accountants), with aiding and abetting a massive securities fraud perpetrated by Mmobuosi Odogwu Banye, also known as Dozy Mmobuosi, and three related U.S. companies that Mmobuosi controlled (the Tingo entities),” the SEC said.

“The SEC recently obtained a $250 million final judgment against Mmobuosi and the Tingo entities.”

According to the SEC’s complaint, Oyebola and his firm deliberately failed to act after discovering that Mmobuosi and his companies created multiple fake audit reports which bore Oyebola’s signature and were included in SEC filings as if issued by his firm.

‘OYEBOLA ASSISTED IN CONCEALING FRAUDULENT REPORTS’

The SEC alleged that Oyebola made material misstatements to the then-auditor of one of the Tingo entities and assisted in concealing the fraudulent reports, causing auditors, investors, and regulators to rely on these fake reports to their detriment.

The commission said Oyebola and his firm’s assistance enabled Mmobuosi and the Tingo entities to carry out a multi-year scheme to inflate financial metrics that defrauded investors globally.

Antonia Apps, director of the SEC’s New York regional office, said as alleged, Oyebola and his firm violated the public trust and gave up their responsibilities as public company accountants and auditors by helping Mmobuosi and the Tingo entities effectuate and conceal their fraud.

“We will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth,” Apps said.

The complaint, filed in the US district court for the southern district of New York, charges Oyebola and his firm with aiding and abetting violations of the antifraud provisions of the federal securities laws by Mmobuosi and three Tingo entities.

The SEC also charged Oyebola with aiding and abetting Mmobuosi in lying to auditors.

The complaint seeks civil penalties as well as permanent injunctive relief including an order permanently barring Oyebola and his firm from acting as auditors or accountants for US public companies or assisting in the preparation of financial statements for SEC filing.

“The ongoing investigation is being conducted by Michael DiBattista, Christopher Mele, Jeremy Brandt, Gerald Gross, and Rebecca Reilly under the supervision of Tejal D. Shah,” the SEC said.

“It is being litigated by David Zetlin-Jones and Mr. DiBattista under the supervision of Alexander Vasilescu, all of the New York Regional Office.

“The SEC appreciates the assistance of the Israel Securities Authority.”

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.

A US federal court, on September 1, fined Mmobuosi the sum of $250 million in monetary relief in a securities fraud suit default judgment.

The default judgment was given by Jesse M. Furman, a US judge, who said Mmobuosi and his companies failed to respond to an SEC lawsuit accusing them of overstating financial results.