Dozy Mmobuosi's Fictional Empire Faces A Costly Reckoning

Few stories have captured the attention of industry watchers as dramatically as the controversy around Nigerian businessman Dozy Mmobuosi over the past year. Once regarded, however self-promoted, as a savvy player in tech and finance, Mmobuosi's claims of a booming business empire have come crashing down amid allegations of massive fraud, resulting in a U.S. federal court order to pay over USD 250 M in fines and a ban on serving as a director of any public company.

The U.S. District Court for the Southern District of New York, under Judge Jesse M. Furman, has issued a default judgment against Mmobuosi and his companies-Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings, reports the FT . The court's ruling came after Mmobuosi failed to respond to a civil complaint filed by the U.S. Securities and Exchange Commission (SEC) in December 2023. The complaint accused him of orchestrating a wide-ranging fraud that inflated the financial performance of his companies, duping investors worldwide.

Judge Furman noted that Mmobuosi and his companies had "failed to answer, plead, or otherwise defend" themselves in the case. As a result, the court ordered Mmobuosi and his entities to pay fines exceeding USD 250 M, marking the end of what the SEC described as an "empire of fiction."

Mmobuosi's fall from grace began with the rise of Tingo Group, a fintech company that claimed to have over 9 million customers in Nigeria, most of whom were farmers. Tingo Group reported substantial revenues, with Tingo Mobile-a subsidiary-claiming to have USD 461.7 M in cash equivalents in Nigerian bank accounts for fiscal year 2022. However, the SEC's investigation revealed that these claims were almost entirely fabricated, with Tingo Mobile's actual balance being less than USD 50.00.

The SEC's complaint painted a picture of deception stretching back to 2019. Mmobuosi allegedly used falsified financial records to depict Tingo Mobile as a thriving business. In reality, the company had no meaningful operations, a negligible customer base, and virtually no cash in its accounts.