A second report, titled “Tingo Forges Ahead With Its Brazen Scam as $725 Million in Claimed Cash Disappears From its Balance Sheet in One Quarter,” was published last August, and in December, the SEC launched its suit against the company alleging Mmobuosi had engaged in a multiyear scheme to inflate the financial performance metrics of Tingo and its entities to defraud investors worldwide.
According to Cheng, shortly after filing its complaint, the SEC obtained a temporary asset freeze, restraining order, and other emergency relief against the company, which was in place until March 15 of this year.
The DOJ also announced in January it had indicted Mmobuosi on charges of securities fraud, conspiracy, and falsifying SEC reports.
Cheng said the defendants’ alleged misconduct has significantly harmed the company and investors since Tingo’s stock price has plummeted roughly 56% since last year. On Friday, Tingo’s stock was trading around $0.42.
The suit seeks damages, attorney fees, and a jury trial. Cheng’s complaint follows another stockholder action filed in March in Delaware Chancery Court over Tingo’s alleged refusal to voluntarily release documents related to the business and Mmobuosi.
