Did You Invest in Minerco? Feds Want to Talk
Bobby Shumake Japhia, aka Robert Samuel Shumake Jr., manipulated stock prices of Minerco, an inactive penny stock company, say prosecutors. The feds are interested in hearing from you if you are a victim. Photo credit: Robert Schumake press release.
The 56-year-old man from Michigan used his company, Minerco Inc., to inflate its stock value by spreading false and misleading information to investors, according to a public statement by the Justice Department.
Shumake allegedly used a few different aliases and fake online profiles to sell nearly a billion shares of Minerco, gaining over $2.5 million in profit.
In addition to securities fraud, Shumake faces obstruction charges for deleting critical evidence related to the SEC investigation.
Shumake faces one count of securities fraud and one count of obstruction, each carrying a potential sentence of up to 20 years in prison if convicted.
Magic Mushrooms and Manipulation
Shumake’s scheme began in 2020 when he began promoting Minerco as a company that markets psilocybin mushrooms, falsely inflating the stock price, say prosecutors. Psilocybin mushrooms, or “shrooms,” cause hallucinogenic effects, which users compare to LSD.
In reality, Minerco was an “inactive penny stock company,” according to the SEC. They didn’t manufacture anything, and their charter had been revoked.
Julius Jenge was the nominal CEO of Minerco, though Shumake controlled the operations behind the scenes, according to court documents. Jenge was also arrested in August 2024.
Shumake allegedly manipulated public sentiment by using anonymous message boards to create a favorable but misleading view of the company, driving demand for Minerco stock. His manipulation caused substantial financial losses to investors who bought into the inflated stock value, say prosecutors.
Destroying Emails = Obstruction of Justice
The legal battle against Shumake intensified when it was revealed that, upon learning that he was under the SEC’s investigation, he obstructed justice by destroying emails and other communications related to the fraudulent scheme.
The indictment charges him with securities fraud and obstruction, each carrying the possibility of up to 20 years in prison. Shumake’s co-conspirator, Julius Jenge, has also been implicated and arrested for his role in the scheme.
In response to the charges, Shumake denied any wrongdoing and claimed he’s “committed to clearing his name.
Are You a Victim of Bobby Shumake?
If you believe you are a victim in this case, the Justice Department wants you to contact their Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov.
You are also encouraged to visit the webpage for this case here.
Previous Run-Ins with the Law
This wasn’t Shumake’s first run-in with the law.
In 2016, he was arrested in Northern California for carrying a large amount of marijuana and $121,000 in cash in an alleged drug transaction, but he was later acquitted. One year later, he pleaded guilty to defrauding the customers of a mortgage-assistance business he ran. He was initially sentenced to probation but violated the terms of his sentence and served 18 months in prison.
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