UPDATE; Nigerian fintech chief fined $250mn after holdings described as a ‘fiction’

A US federal court has imposed fines exceeding $250 million on Nigerian businessman Dozy Mmobuosi, who last year attempted to purchase the English football club Sheffield United. Mmobuosi and his three companies—Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings—were found guilty of fraud by inflating financial metrics to deceive investors globally. The US Securities and Exchange Commission (SEC) charged Mmobuosi last year, alleging that the financial performance and assets of his enterprises were largely fabricated.

Judge Jesse M. Furman of the US District Court for the Southern District of New York issued a final judgment by default against Mmobuosi and his companies after they failed to respond to the SEC’s civil complaint. The ruling prohibits Mmobuosi from serving as a director of any public company.

The SEC’s complaint revealed that Tingo Group, which claimed to have over 9 million customers and significant food processing operations in Nigeria, was a facade. Tingo Mobile’s reported cash balance of $461.7 million was actually less than $50, according to the SEC. The charges followed a report by Hindenburg Research, which labeled Tingo as an “exceptionally obvious scam,” leading to a sharp decline in Tingo’s stock price.

The SEC had previously suspended trading of Tingo Group and Agri-Fintech Holdings on Nasdaq due to concerns over the accuracy of their financial disclosures. Mmobuosi’s attempt to acquire Sheffield United, which recently dropped from the Premier League to the English Football League Championship, has not yet elicited a response from him or his companies.