The US Securities and Exchange Commission (SEC) has filed charges of insider trading, providing false information to auditors, and violations of internal controls, among others, against Tingo Group Inc, Agri-Fintech Holdings Inc and Tingo International Holdings Inc.
The American financial supervisory body also hit Tingo Group CEO, Dozy Mmobuosi, with charges of fraud.
The legal action comes after US short seller, Hindenburg Group published a damning report in June labeling Tingo Group as an “exceptionally obvious scam with completely fabricated financials.”
The report alleged that Tingo falsified information regarding partnerships, projects, and expansions. Despite Tingo Group denying the allegations, the company’s share price plummeted by 55% following the report.
In November, the SEC launched a formal investigation into Tingo Group, resulting in the suspension of trading in the self-proclaimed agri-fintech company’s shares. The SEC has now escalated the matter by filing charges against Tingo Group, accusing the company of fraud.
One significant misrepresentation highlighted in the charges involves Tingo Group reporting $461.7 million in cash and cash equivalents for the fiscal year 2022, while its actual bank accounts held less than $50.
As the case unfolds, it will likely shed light on the allegations made by Hindenburg Group and the veracity of Tingo Group’s financial disclosures.
