In a press release issued on Monday, the SEC disclosed its move to secure a temporary asset freeze and restraining order, along with other emergency measures against the company's founder, Dozy Mmobuosi. The SEC alleges that Mmobuosi orchestrated a multi-year scheme to artificially inflate the financial performance metrics of his companies and subsidiaries, deceiving investors globally.

The SEC's release stated, "Mmobuosi spearheaded a scheme to fabricate financial statements and other documents" for three entities: Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc., along with their Nigerian operating subsidiaries.

One of the most egregious instances of fraud cited by the SEC was Tingo Group's claim of having $461.7 million in cash, while in reality, its bank accounts allegedly held less than $50 at the end of the fiscal year 2022.

The SEC further alleged that defendants not only falsified financial statements but also concocted customer relationships crucial to their purported businesses. According to the SEC, Mmobuosi and the entities under his control fraudulently acquired hundreds of millions in money or property through these schemes.

Antonia M. Apps, Regional Director of the SEC’s New York Regional Office, commented on the case, stating, "Mmobuosi spearheaded a brazen scheme using phony records and fictitious entities to make the Tingo companies he controlled appear highly profitable, so that he could hoodwink investors and reap massive benefits at their expense."

Nathan Anderson of Hindenburg Research highlighted an unexpected twist, noting that Deloitte Israel had provided Tingo with a clean audit opinion for 2022 and expressed interest in continuing the partnership for 2023. Anderson called this development an "astonishing audit failure" for a Big 4 firm.