The U.S. Securities and Exchange Commission (SEC) has charged Nigerian auditor Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co., for their alleged involvement in a securities fraud scheme orchestrated by businessman Dozy Mmobuosi and three U.S.-based companies collectively known as the Tingo entities.
This comes after the SEC secured a $250 million judgment against Mmobuosi and the Tingo entities for fraudulent activities.
Allegations Against Oyebola and His Firm
According to the SEC, Oyebola’s firm played a critical role in enabling Mmobuosi and the Tingo entities to mislead investors by falsifying audit reports. These fraudulent reports, signed by Oyebola, were presented to the SEC as legitimate.
Furthermore, Oyebola allegedly misled the auditors of one Tingo entity and concealed the fabricated nature of the reports, which helped inflate financial metrics and deceive global investors.
Antonia M. Apps, Director of the SEC’s New York Regional Office, stated:
“As alleged, Oyebola and his firm violated the public trust… We will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth.”
SEC Charges
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, accuses Oyebola and his firm of aiding and abetting violations of antifraud provisions in federal securities laws. Additionally, the complaint seeks civil penalties, permanent injunctive relief, and an order barring Oyebola and his firm from acting as auditors or accountants for U.S. public companies.
The SEC investigation, led by a team from the New York Regional Office and assisted by the Israel Securities Authority, is ongoing.
The backstory of Dozy Mmobuosi Fraud Case
Last month, the U.S. District Court for the Southern District of New York imposed a $250 million fine on Nigerian entrepreneur Dozy Mmobuosi after a fraud case brought by the Securities and Exchange Commission (SEC). The case involved Mmobuosi and his companies, including Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings.
Judge Jesse M. Furman found that Mmobuosi and his companies had not responded to the SEC’s civil complaint filed in December, leading to a default judgment. The SEC accused Mmobuosi of orchestrating large-scale fraud by inflating financial metrics and fabricating his companies’ business operations.
Among the fraudulent claims, Tingo Group, a fintech entity, asserted it had over nine million Nigerian farmers as customers and operated a robust food processing network. However, the SEC’s investigation revealed that the assets, revenues, and operations were almost entirely fabricated, exposing the company as a fiction.
For more details on this case, please visit LegalLinkz.com.
