The chief executive officer of Minerco Inc. (stock ticker MINE) was arrested last week on charges of securities fraud related to a scheme to defraud investors in Minerco.
According to court documents, between October 2019 and June 2021, Julius Jenge, 54, allegedly defrauded investors in the publicly traded securities of Minerco by collaborating with a co-schemer to take control of the company in late 2019. This included causing the issuance of one billion Minerco shares to a nominee shareholder and releasing positive press statements about Minerco, some of which contained materially false and misleading information, aiming to artificially inflate the share price. Starting around January 2020, Minerco publicly claimed to be in the business of developing, marketing, and distributing psilocybin mushrooms.
Jenge is accused of concealing the involvement of a co-schemer with a criminal history who controlled all aspects of Minerco’s operations. Among other things, Jenge allegedly failed to disclose this individual's involvement in public filings as required. Additionally, during an investor video conference, Jenge allegedly falsely stated that he had earned an MBA in marketing and a BA in accounting.
Minerco’s stock price and trading volume increased during the period of the alleged scheme as investors purchased Minerco stock.
Jenge was arrested on Aug. 22 at Ronald Reagan Washington National Airport while booked on a flight to Tanzania.
He is charged with one count of securities fraud. If convicted, Jenge faces up to 20 years in prison.
Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; Inspector General Deborah Jeffrey of the U.S. Securities and Exchange Commission Office of Inspector General (SEC-OIG); and Inspector in Charge Eric Shen of the U.S. Postal Inspection Service (USPIS) Criminal Investigations Group made the announcement.
The SEC-OIG and USPIS are investigating the case.
Trial Attorney Kyle Crawford of the Criminal Division’s Fraud Section is prosecuting the case.
If you believe you are a victim in this case, please contact the Fraud Section’s Victim Witness Unit toll-free at (888) 549-3945 or by email at victimassistance.fraud@usdoj.gov. Additional information can be found on their webpage for this case at www.justice.gov/criminal/criminal-vns/case/united-states-v-julius-makiri-jenge.
A criminal complaint is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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