The US Securities and Exchange Commission has imposed a $250 million penalty on Nigerian businessman and a former CEO of Tingo Group, Dozy Mmobuosi, for inflating the company’s financial performance.

Recall that the SEC’s investigation, which began in 2023, revealed that Tingo Group and its subsidiary, Tingo Mobile, falsely reported substantial revenue and cash reserves.

According to report the actual cash balance of Tingo Mobile’s Nigerian accounts was found to be significantly less than reported, leading to charges of fraudulent financial reporting. In addition to the fine, Mmobuosi has been barred from serving as a director of any public company.

The SEC’s judgment also enjoins Tingo Group and its associated entities from violating securities fraud provisions. Despite Tingo Group’s denial of the charges, neither Mmobuosi nor the company presented a defence in the civil complaint, resulting in a default judgment by the court.

Recall On December 18, 2023, newsmen reported that Mmobuosi was to face charges from the Securities and Exchange Commission of the United States for falsifying financial statements and other records of three Tingo Group companies, including Tingo Mobile and Tingo Foods Plc.