Three news to start your week: September 9
Nigerian fintech chief fined $250mn after holdings described as a 'fiction'
(Financial Times)
A federal court in the United States has mandated that Nigerian businessman Dozy Mmobuosi pay over $250 million in fines. It also has prohibited him from holding a directorship in any public company. Mmobuosi, who attempted to purchase the English football club Sheffield United last year, was charged by the US Securities and Exchange Commission (SEC) with fraud for artificially inflating the financial performance metrics of his companies and key subsidiaries to deceive investors globally.
Judge Jesse M. Furman of the US District Court for the Southern District of New York has issued a final judgment by default against Mmobuosi and his enterprises, Tingo Group, Agri-Fintech Holdings, and Tingo International Holdings after he neglected to respond to the civil complaint filed by the SEC last December. The judge noted that Mmobuosi and his companies "failed to answer, plead, or otherwise defend" themselves in the legal proceedings.
Lebanon's former central bank governor detained in corruption probe
(AP)
Lebanon's former central bank governor, a figure mired in controversy, was detained last week after being interrogated regarding multiple corruption cases.
Salameh held the position of central bank governor for 30 years, starting in 1993. Initially praised for aiding Lebanon's economic recovery following a 15-year civil war, he resigned last year amidst serious allegations, facing scrutiny from several European nations over purported financial misconduct. Many in Lebanon blame him for the financial crisis that has enveloped the country since late 2019.
Despite numerous accusations of corruption, embezzlement, and illicit enrichment, Salameh has consistently maintained his innocence, attributing his wealth to inherited properties, investments, and his previous role as an investment banker at Merrill Lynch. He remains one of the officials most criticized for steering policies that precipitated the current economic turmoil, which has led to a staggering 90% devaluation of the Lebanese pound against the US dollar and triggered hyperinflation.
SEC Charges Six Credit Rating Agencies with Significant Recordkeeping Failures
(SEC)
The Securities and Exchange Commission (SEC) has charged six nationally recognized statistical rating organizations (NRSROs) for serious lapses in their ability to maintain and secure electronic communications. The firms have acknowledged the validity of the SEC orders and conceded that their actions contravened the recordkeeping stipulations of federal securities laws. They agreed to pay over $49 million in penalties and are improving their compliance policies to address these issues.
The organizations charged were Moody's Investors Service, S&P Global Ratings, Fitch Ratings, HR Ratings de México, A.M. Best Rating Services, and Demotech.
All credit rating agencies, except for A.M. Best and Demotech, must hire a compliance consultant. A.M. Best and Demotech took significant steps to comply with the recordkeeping requirements early on as registered credit rating agencies and fully cooperated with the SEC's investigations.
