US SEC Charges Nigerian Auditor Olayinka Oyebola in $250M Fraud

by AriseNews

WASHINGTON — The U.S. Securities and Exchange Commission (SEC) has charged Nigerian auditor Olayinka Oyebola and his firm, Olayinka Oyebola & Co. (Chartered Accountants), for allegedly aiding and abetting a massive securities fraud orchestrated by Mmobuosi Odogwu Banye, known as Dozy Mmobuosi, the former CEO of Tingo Group. The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, accuses Oyebola and his firm of helping Mmobuosi and three U.S.-based companies he controlled in a scheme that defrauded investors of approximately $250 million.

According to the SEC, Oyebola and his firm failed to act when they discovered that Mmobuosi’s companies had submitted fake audit reports bearing Oyebola’s signature as part of their SEC filings. These fake reports, which were used in official filings, falsely appeared to be legitimate audits conducted by Oyebola’s firm, despite his knowledge of their fraudulent nature. The SEC charges Oyebola with aiding and abetting violations of federal securities laws and seeks civil penalties, along with permanent injunctions to bar him and his firm from acting as auditors for U.S. public companies.

The SEC’s investigation revealed that Mmobuosi, who was previously charged by the SEC in December 2023 for orchestrating the fraud, used the fake audits to mislead investors and the public about the financial health of Tingo Group and its affiliated companies. As part of the ongoing legal process, Mmobuosi was handed a $250 million default judgment in a securities fraud suit by a U.S. federal court in September 2024.

In addition to charging Oyebola, the SEC is seeking measures to prevent him and his firm from providing audit services for U.S. companies in the future, further emphasizing the importance of transparency and accountability in financial reporting. The case highlights the growing role of international cooperation in financial investigations, with the Israel Securities Authority assisting the SEC in the probe.

This ongoing investigation underscores the SEC’s commitment to pursuing individuals and firms that aid in securities fraud and undermine the integrity of U.S. markets.