Would-be Sheffield United owner Dozy Mmobuosi charged with fraud after remarkable financial allegations

Dozy Mmobuosi, the Nigerian businessman whose bid to take over Sheffield United failed earlier this year, has been charged with fraud by the USA's Securities and Exchange Commission [SEC], according to a complaint filed today in New York. Mmobuosi agreed a deal with United owner Prince Abdullah to take over the Blades, but was unable to convince the EFL of his capability to run the club.

Mmobuosi has now been accused by the SEC of "massive fraud", in a complaint filed in the U.S. District Court for the Southern District of New York today. The SEC allege that Mmobuosi, "since at least 2019 ... spearheaded a scheme to fabricate financial statements and other documents of the three entities and their Nigerian operating subsidiaries, Tingo Mobile Limited and Tingo Foods PLC."

The complaint also alleges that Mmobuosi misrepresented business operations and financial success in press releases and SEC filings. "For instance," a release on the SEC's own website alleged, "Tingo Group’s fiscal year 2022 Form 10-K filed in March 2023 reported a cash and cash equivalent balance of $461.7 million in its subsidiary Tingo Mobile’s Nigerian bank accounts. In reality, those same bank accounts allegedly had a combined balance of less than $50 as of the end of fiscal year 2022."

Mmobuosi and three companies he is involved with - Tingo Group Inc., Agri-Fintech Holdings Inc., and Tingo International Holdings Inc. - are also accused of "fabricating the customer relationships that formed the basis of their purported businesses" with the SEC also alleging that "Mmobuosi and the entities he controls have fraudulently obtained hundreds of millions in money or property through these schemes."

Although not named explicitly, United are also included in the filing with the allegation that "Mmobuosi has siphoned off funds for his personal benefit, including purchases of luxury cars and travel on private jets, as well as an unsuccessful attempt to acquire an English Football Club Premier League team, among other things."

In addition to the other allegations, the SEC is also charging Mmobuosi with lying to auditors and insider training, seeking civil penalties and the return of bonus and profits obtained by Mmobuosi from sales of Tingo Group or Agri-Fintech stock. The SEC are also seeking a temporary restraining order to freeze Mmobuosi's assets while the ongoing investigation continues, a month after the SEC formally launched an inquiry into Mmobuosi's Tingo Group.