Revealed: Nigerian Tech entrepreneur who aided Malawi faces lengthy U.S. prison term for fraud

In a startling turn of events, Odogwu Dozy Mmobuosi, the Nigerian tech entrepreneur hailed for his philanthropic gesture of donating K500 million to assist in housing construction for Cyclone Freddy victims in Malawi, now finds himself entangled in a legal web in the United States.

The once-respected founder and CEO of Tingo Group, a Nasdaq-listed “agri-fintech” startup, is staring at a potential 45-year prison sentence for corporate fraud.

The US prosecutors have laid bare the intricate details of the criminal charges against the 45-year-old Mmobuosi, accusing him of orchestrating a sophisticated scheme involving hundreds of millions of dollars in fictitious revenues and assets for three companies under his control.

The charges, including conspiracy, securities fraud, and making false filings with the Securities and Exchange Commission, carry a daunting maximum sentence of 45 years. Shockingly, Mmobuosi is reportedly at large, heightening the drama surrounding the unfolding legal saga.

Mmobuosi’s commendable act of generosity came to light after Cyclone Freddy wreaked havoc in Malawi last year. He arrived in the country as a guest of former President Bakili Muluzi and, during his visit, contributed a substantial K500 million towards constructing homes for Cyclone Freddy victims in Phalombe.

The philanthropist was even granted an express diplomatic passport by the immigration department, highlighting the recognition of his humanitarian efforts.

However, on the other side of the globe, the US Attorney’s Office paints a starkly different picture. According to the prosecutors, Mmobuosi artificially inflated the financial performance and assets of his companies, which include Tingo Mobile and Tingo Foods. He allegedly sold these companies to US-listed entities, such as Tingo Group and Agri-Fintech Holdings, which subsequently issued misleading financial statements.

The accusations further suggest that Mmobuosi masterminded a scheme to portray his Nigerian ventures, Tingo Mobile and Tingo Foods, as highly profitable businesses, generating hundreds of millions of dollars in revenue. Investigations have revealed a staggering gap between the reported financials and the actual balances in the bank accounts.

For instance, Tingo Group reported a substantial cash equivalent of $461.7 million in 2022, while its bank accounts held less than $50 in total. Mmobuosi’s lofty claims about Tingo’s user base and valuation were allegedly grounded in falsified financial data, portraying a facade that hid the true financial standing of his companies.

The façade began to crumble when Hinderburg Research, a renowned American short seller, raised questions about Tingo’s financials, branding it a massive fraud.

In response to the mounting pressure, the Securities and Exchange Commission (SEC) initiated an investigation in December 2023, resulting in the suspension of trading in Tingo’s shares. Two days later, Mmobuosi, feeling the heat, temporarily stepped down from his position.

The SEC alleges that Mmobuosi managed to siphon an estimated $16 million from Tingo Group and profited from the sale of inflated shares. The scope of his purported fraud, spanning billions of dollars since 2019, is described by the SEC as “staggering.” The commission also suspended trading in Tingo Group and Agri-Fintech Holdings in November 2023 due to concerns about the accuracy of publicly available information.

Mmobuosi, who had ambitious plans for Tingo Group, including raising $500 million in a capital round and launching an IPO in 2022, vehemently denies the allegations. He claims to be a victim of a conspiracy and asserts that his companies are legitimate and profitable.

In a recent statement, Mmobuosi declared, “I wish to make it unequivocally clear that these allegations are unfounded, and we are preparing to contest them to the full extent of our capacity.”

Despite his denial, the legal battle looms large. Mmobuosi, who currently resides in the United Kingdom, emphasized his commitment to cooperating with legal authorities to ensure a thorough and fair examination of the facts. He believes this will ultimately lead to his exoneration.

The statement also urged media and the public to respect the legal process and principles of justice during this challenging time.

As the legal drama unfolds, the stark contrast between the philanthropic figure who aided Cyclone Freddy victims and the alleged mastermind of a colossal corporate fraud adds layers to the unfolding narrative.

The coming months will reveal whether Dozy Mmobuosi’s legacy is one of benevolence or deception, as the legal system in the United States grapples with the complexities of this high-profile case.

Follow and Subscribe Nyasa TV :

Sharing is caring!