By Milcah Tanimu
The U.S. Securities and Exchange Commission (SEC) has charged Nigerian auditor Olayinka Oyebola and his firm, Olayinka Oyebola & Co. They face allegations of participating in a significant securities fraud scheme. This scheme involves businessman Dozy Mmobuosi and three U.S.-based companies known as the Tingo entities.
This development follows a $250 million judgment that the SEC obtained against Mmobuosi and the Tingo entities. The SEC’s complaint states that Oyebola and his firm enabled Mmobuosi and the Tingo entities to mislead investors for years by falsifying audit reports.
The SEC indicates that fraudulent audit reports bearing Oyebola’s signature appeared legitimate. Additionally, the SEC alleges that Oyebola misled the auditor of one Tingo entity and concealed the fact that the audit reports were fake. Consequently, this deception allowed Mmobuosi and his companies to inflate their financial metrics and mislead investors worldwide.
Antonia M. Apps, Director of the SEC’s New York Regional Office, condemned Oyebola’s actions. She stated:
“As alleged, Oyebola and his firm violated the public trust and abdicated their responsibilities as public company accountants and auditors. They helped Mmobuosi and the Tingo entities conceal their fraud. Therefore, we will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth.”
Furthermore, the SEC filed its complaint in the U.S. District Court for the Southern District of New York. They charged Oyebola and his firm with aiding and abetting violations of antifraud provisions of federal securities laws by Mmobuosi and the Tingo entities. Additionally, the SEC charged Oyebola with aiding and abetting Mmobuosi’s lies to auditors.
In light of this, the SEC seeks civil penalties and permanent injunctive relief. This includes an order that would bar Oyebola and his firm from acting as auditors for U.S. public companies or providing assistance in preparing financial statements filed with the SEC.
Importantly, officials are conducting the ongoing investigation under the supervision of Tejal D. Shah. They also received assistance from the Israel Securities Authority.
This case follows a $250 million fine that a U.S. federal court imposed on Mmobuosi last month. Judge Jesse M. Furman ruled against Mmobuosi and his companies. They included Tingo Group and Agri-Fintech Holdings. Mmobuosi failed to respond to the SEC’s civil complaint filed in December.
Moreover, the SEC accused Mmobuosi of orchestrating a large-scale fraud. He inflated his companies’ financial performance metrics to mislead investors. Investigations revealed that Mmobuosi’s business empire was largely fabricated. In fact, claims regarding assets, revenues, and customer bases were grossly exaggerated.
