Nigerian auditor indicted by United States SEC for alleged fraud

A Nigerian auditor, Olayinka Oyebola and his accounting firm, Olayinka Oyebola & Co, have been charged by the United States Securities and Exchange Commission (SEC) for allegedly being involved in fraudulent activities in connection with a businessman, Dozy Mmobuosi, and three U.S.-based companies collectively referred to as the Tingo entities.

In a statement obtained from the U.S. SEC website, Oyebola and his firm played an active role in enabling Mmobuosi and the Tingo entities to deceive investors over several years by falsifying audit reports.

The SEC said the fraudulent audit reports, which bore Oyebola’s signature, were submitted to the SEC as if they had been legitimately issued by his firm.

It explained that the SEC recently obtained a $250 million judgment against Mmobuosi and the Tingo entities for their fraudulent activities.

The SEC said Oyebola allegedly made misleading statements to the auditor of one of the Tingo entities and concealed the fact that the audit reports were fake.

It added that this deception allowed Mmobuosi and his companies to inflate their financial metrics and mislead investors globally.

Director of the SEC’s New York Regional Office, Antonia Apps: “As alleged, Oyebola and his firm violated the public trust and abdicated their responsibilities as public company accountants and auditors by helping Mmobuosi and the Tingo entities effectuate and conceal their fraud. We will not hesitate to hold gatekeepers to the public markets accountable when they facilitate fiction rather than truth.”

It noted that the SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, charges Oyebola and his firm with aiding and abetting violations of the antifraud provisions of the federal securities laws by Mmobuosi and the three Tingo entities.

In addition, the SEC also charged Oyebola with aiding and abetting Mmobuosi’s violation of lying to auditors.

The complaint seeks civil penalties as well as permanent injunctive relief, including an order permanently barring Oyebola and his firm from acting as auditors or accountants for U.S. public companies or otherwise providing substantial assistance in the preparation of financial statements filed with the SEC.

Meanwhile, the Nigerian Exchange Limited (NGX) resumed trading for October on a bearish note yesterday, as capitalisation depreciated by N188 billion, amid losses in 32 stocks.

At the close of transactions yesterday, the market capitalisation of listed equities declined by 0.33 per cent to N56.447 trillion from N56.635 trillion reported the previous day.

Also, the all-share index declined by 326.4 basis points to 98232.39 points from 98557.79 points recorded in the previous day.

The downtrend was driven by price depreciation in large and medium-capitalised stocks amongst which are Oando, United Bank for Africa (UBA), FBN Holdings (FBNH), MTN Nigeria Communications and Dangote Sugar Refinery.

As measured by market breadth, market sentiment was negative, as 32 stocks lost relative to 26 gainers. On the price movement chart, International Breweries led the gainers’ chart, appreciating by 9.98 per cent to close at N4.41 kobo. Meyer Paint followed with a gain of 9.94 per cent to close at N8.52 kobo.

Veritas Kapital added 9.93 per cent to close at N1.66 kobo. Tripple G appreciated by 9.91 per cent to close at N4.99 kobo. Deap Capital increased by 9.84 per cent to close at N1.34 kobo.

On the contrary, EllahLakes topped the losers’ chart, dropping 9.93 per cent to close at N3.99 kobo while Caverton Business Solutions trailed with a loss of 9.92 per cent to N2.18 kobo.

ABC Transport declined by 9.57 per cent to close at N1.04 kobo. Livestock Feeds shed 9.03 per cent to close at N2.72 kobo. Consolidated Hallmark Plc declined by 7.24 per cent to close at N1.41 kobo.

Volume of trade decreased by 1.431 billion, representing 77.07 per cent as investors traded 425.764 million shares valued at N8.450 billion in 11954 deals against 1.857 billion shares cost N111.579 billion in 10583 deals.

The result further showed that United Bank for Africa led market activities with 108.022 million shares valued at N3.013 billion, Zenith Bank followed with an account of 35.172 million shares cost N1.327 billion.

Veritas Kapital traded 30.583 million shares costing N49.18 million EllaLakes exchanged 21.611 million shares valued at N88.52 million while Regal Insurance traded 19.081 million shares valued at N15.647 million.