The U.S. Securities and Exchange Commission (SEC) has leveled significant charges against Olayinka Temitope Oyebola, a Nigerian accountant, and his firm, Olayinka Oyebola & Co. , in connection with a massive fraud orchestrated by Nigerian businessman Dozy Mmobuosi. The SEC claims that Oyebola and his firm (Chartered Accountants) aided and abetted a multi-year securities fraud scheme involving Tingo, a fintech company controlled by Mmobuosi, and several related entities.
According to the SEC’s complaint, Oyebola and his firm knowingly allowed fake audit reports to be submitted to the SEC as part of Tingo’s regulatory filings. These fraudulent reports, bearing Oyebola’s signature, were instrumental in inflating the financial performance metrics of Tingo and misleading investors. The charges are part of a broader investigation into Mmobuosi, who was recently hit with a $250 million final judgment for securities fraud, involving Tingo Group, Inc., Agri-Fintech Holdings, Inc., and Tingo International Holdings, Inc.
Allegations of Complicity
The SEC alleges that Oyebola not only failed to take appropriate action upon discovering that his firm’s name and signature were being used on fake audit reports but also made material misstatements to the auditors of Tingo. His actions, according to the complaint, helped Mmobuosi conceal fraudulent financial information from investors, auditors, and regulators. This ultimately allowed Tingo to perpetrate a scheme that spanned several years, deceiving investors both in the U.S. and globally.
The charges against Oyebola include violations of key antifraud provisions under both the Securities Act of 1933 and the Securities Exchange Act of 1934. Specifically, Oyebola is charged with aiding and abetting violations of Section 17(a) of the Securities Act and Section 10(b) of the Exchange Act, as well as Rule 10b-5, which prohibits fraudulent practices in connection with the sale of securities. Additionally, the SEC has accused Oyebola and his firm of accountants of helping Mmobuosi of Tingo Group lie to auditors, in violation of Exchange Act Rules 13b2–2(a) and (b).
SEC Seeks Severe Penalties
The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, seeks civil penalties and permanent injunctive relief against Oyebola and his firm. If the court rules in favor of the SEC, Oyebola and Olayinka Oyebola & Co. could face a permanent ban from acting as auditors or accountants for U.S. public companies. This would effectively bar them from providing substantial assistance in the preparation of financial statements for any U.S.-listed entity. Additionally, the SEC is pursuing monetary penalties and a permanent injunction preventing Oyebola from further involvement in securities filings.
The case is being handled by a team of investigators and litigators from the SEC’s New York Regional Office, with the ongoing investigation revealing new facets of the fraud scheme.
Mmobuosi’s Fraudulent Empire
The charges against Oyebola follow a recent final judgment against Dozy Mmobuosi, the Nigerian entrepreneur who once led Tingo, a fintech company that claimed to revolutionize the agritech sector in Africa. Mmobuosi and his affiliated companies were accused of fabricating financial statements and deceiving investors about the company’s performance. In August 2024, the U.S. District Court for the Southern District of New York issued a $250 million default judgment against Mmobuosi and his companies, permanently barring them from violating U.S. securities laws.
The judgment also included severe penalties for Mmobuosi, such as a permanent ban from serving as an officer or director of any publicly traded U.S. company, a penny stock bar, and an order to disgorge profits of over $250 million. The court also ordered the cancellation of shares held by Mmobuosi and Tingo International Holdings, further diminishing his influence over the company.
A Broader Crackdown on Fraud
The SEC’s case against Oyebola is part of a larger crackdown on individuals and firms that assist in perpetrating securities fraud. The agency has ramped up its enforcement efforts, particularly against international actors involved in fraudulent schemes within U.S. markets. The charges against Oyebola highlight the increasing scrutiny placed on accounting firms, especially those that play critical roles in facilitating fraudulent activities.
For Mmobuosi, this marks the collapse of what was once seen as a promising business empire. Tingo, which was positioned as a leader in Africa’s fintech and agritech sectors, now faces an uncertain future as it deals with the legal and financial fallout. The SEC’s ruling may also have wider implications, potentially prompting other regulators to examine Mmobuosi’s business activities in various jurisdictions beyond the U.S.
Implications for the Nigerian Accounting Industry
The charges against Oyebola and his firm of accountants in relation to the Tingo case also raise serious questions about the role of accounting firms in emerging markets like Nigeria, where fintech companies are rapidly gaining prominence. As international investors increasingly look to Africa for opportunities, the scrutiny on firms that handle financial reporting is likely to intensify. This case underscores the importance of ensuring that accounting practices meet global standards, particularly when companies seek to raise funds in U.S. markets.
With the SEC continuing its investigation, it is unclear what the final outcome will be for Oyebola and his firm. However, the case serves as a exemplary tale for professionals who may be tempted to turn a blind eye to fraudulent activities. The SEC’s aggressive stance on securities fraud, especially in the Tingo Group’s case, sends a strong message that those who facilitate or participate in such schemes, including accountants or indeed lawyers, will be held accountable, regardless of their location or industry.
As this case unfolds, the African financial technology community will be watching closely, particularly as regulators in other regions may take further action against Mmobuosi’s ventures. The SEC’s charges mark yet another significant chapter in the ongoing battle against fraud in international markets.