Dozy Mmobuosi was earlier linked with a takeover of English Premier League side, Sheffield United, earlier this year
The United States Securities and Exchange Commission (SEC) has filed charges against Nigerian businessman Dozy Mmobuosi and his companies, alleging a colossal fraud scheme, Soccernet.ng reports.
The accusations revolve around inflated financial claims, fake documents, and fictitious companies, leading to a deception that involved Tingo Group, listed on Nasdaq.
The SEC claims Mmobuosi—who has recently unveiled a Lagos-based team to 1472 FC—orchestrated an elaborate fraud through inflated financials of Tingo Mobile, misrepresenting it as a billion-dollar enterprise with minimal assets.
This purported success was integrated into Tingo Group through a merger. Further allegations involve the sale of a fictitious company, Tingo Foods, for $204 million to Tingo Group, compounding the misrepresented revenues.
The SEC asserts that Mmobuosi's alleged actions resulted in the fraudulent acquisition of hundreds of millions of dollars.
Moreover, the lawsuit highlights personal enrichment through extravagant spending, including luxury cars and private jet travel, and suggests diverted funds were earmarked for a failed bid to acquire Sheffield United Football Club.
Mmobuosi, who appeared to be on the brink of a takeover of Sheffield United earlier this year, faced scrutiny from the English Football League regarding the source and sufficiency of his funding, which eventually led to the breakdown of negotiations.
In response to the SEC's actions, emergency relief measures are sought to freeze assets and prohibit money transfers or property transactions. Additionally, orders are requested to prevent the disposal of holdings and the destruction of records by the defendants.
Meanwhile, Soccernet.ng has learned of Mmobuosi's purported interest in a takeover bid for Czech club Sk Dynamo Ceske Budejovic, which is currently grappling with financial difficulties in the Czech Republic.
