The U.S. Securities and Exchange Commission (SEC) has filed charges against Nigerian auditor Olayinka Oyebola and his firm, Olayinka Oyebola & Co. (Chartered Accountants), for their alleged involvement in a $250 million securities fraud case linked to Dozy Mmobuosi, the former CEO of Tingo Group.
The charges, filed in the U.S. District Court for the Southern District of New York, accuse Oyebola and his firm of aiding and abetting violations of U.S. antifraud provisions, specifically Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934, along with Rule 10b-5.
The SEC's complaint highlights that Oyebola and his firm knowingly failed to act upon discovering that Mmobuosi and his companies were utilizing fake audit reports bearing Oyebola’s signature.
These fraudulent reports were included in SEC filings, misleading auditors, investors, and regulators. The SEC seeks civil penalties and permanent injunctive relief, including barring Oyebola and his firm from acting as auditors or accountants for U.S. public companies.
Mmobuosi, a Nigerian businessman and tech entrepreneur, allegedly orchestrated a scheme from 2019 to 2023 to enrich himself by falsely representing Tingo Mobile and Tingo Foods as profitable entities. He then sold these companies to U.S.-listed firms, causing them to issue misleading financial statements.
Mmobuosi has been charged with conspiracy, securities fraud, and making false filings with the SEC, facing potential prison sentences of up to 20 years for each charge.
The SEC's investigation, conducted with assistance from the Israel Securities Authority, signifies the gravity of the allegations. Antonia Apps, director of the SEC’s New York regional office, criticized Oyebola for violating public trust and aiding in the concealment of the fraud. This case exemplifies the commitment of U.S. authorities to uncover and prosecute financial fraud, with the FBI also playing a crucial role in the investigation.
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