2 months ago

SEC Charges 'Magic Mushroom' Co. Minerco In $8M Pump-And-Dump Scheme

The Securities and Exchange Commission (SEC) has charged Minerco Inc. (OTC:MINE) and two individuals with orchestrating a multimillion-dollar pump-and-dump scheme. According to the SEC’s complaint, investors were defrauded of approximately $8 million through the false promotion of Minerco as a psilocybin mushroom company.

Minerco Leadership Allegedly Concealed Ownership Links

Between 2019 and 2021, Bobby Shumake, AKA Robert Samuel Shumake Jr., allegedly gained secret control of a large stock position in Minerco, an inactive penny stock company. He arranged for Julius Makiri Jenge to assume control of Minerco to conceal his involvement due to prior negative publicity. The defendants then began promoting Minerco as the “first publicly traded company focused on the research, production, and distribution of psilocybin mushrooms.”

Jenge was arrested in August at Ronald Reagan Washington National Airport while attempting to board a flight to Tanzania. He faces charges of securities fraud related to the scheme and could face up to 20 years in prison if convicted.