SEC Exposes Massive Fraud: Nigerian FinTech Chief Fined $250M
Hey FinTech Fanatic!
A US federal court has imposed a $250 million fine on Nigerian FinTech entrepreneur Dozy Mmobuosi and his three US-based companies, barring him from holding any directorial position in public companies.
This follows charges by the SEC, which accused Mmobuosi of orchestrating a massive fraud by inflating the financial metrics of his FinTech ventures, including two Nasdaq-listed companies.
The SEC described his empire, which claimed to have over 9 million customers, mostly farmers in Nigeria, as a “fiction,” with most of its assets and revenues fabricated.
One of his companies, Tingo Mobile, reported over $461 million in Nigerian bank accounts for 2022, but SEC investigations revealed the balance was under $50.
The fraud's scale, according to the SEC, was staggering, leading to the suspension of trading in his companies' shares.
According to The Financial Times, Mmobuosi and his companies could not be immediately reached for comment.
Cheers,
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