On August 23, Julius Jenge, the CEO of magic mushroom company Minerco, was arrested at the airport near Washington DC. The arrest resulted from a Securities and Exchange Commission (SEC) investigation into a “pump-and-dump scheme” orchestrated by Jenge, 54, who was attempting to flee stock fraud charges with a one-way flight to Tanzania. The story of Minerco is a wild ride, involving an anonymous collaborator with a criminal history with whom Jenge attempted to manipulate the value of the company’s stock price by making false and misleading claims about Minerco’s involvement in the magic mushroom industry.
According to public SEC filings, Minerco was formed around 2007 and originally started as an oil and natural gas company before pivoting to renewable energy, and then the beverage industry. However, the company reported zero revenues between 2016 and 2019 and was trading at approximately $0.0001 per share in July 2019, when Jenge was first contacted by an anonymous person code-named “CS-1” in the legal documents. CS-1 was interested in acquiring Minerco but could not serve as the company’s CEO because he had a prior criminal history, including getting caught with several pounds of cannabis and $121,000 cash outside a motel in California and two misdemeanor violations of the credit services protection act. Jenge agreed to serve as Minerco’s leadership, even though CS-1 was secretly calling the shots.
READ: Museum to Honor Maria Sabina and Mazatec Traditions Seeks Funding
As part of the scheme to defraud Minerco investors, Jenge and his partner made false statements to the public designed to inflate the value of their company. In a press release distributed in January 2020, the y stated that Minerco had been acquired by a “specialized investment firm” and a “psilocybin research and investment firm.” In fact, the company that acquired Minerco was merely a holding company for Minerco shares and had no specialized experience in psilocybin research.
In 2021, the company announced a joint venture with Lazarus Holistic to grow and develop a unique strain of mushrooms specific to Jamaica and claimed that it would inherit multiple licenses to grow, process, and extract both cannabis and psilocybin. It told investors that it would produce one million tablets of psilocybin microdots daily that would be sold in legal markets, plus a line of medical-grade mushrooms sold nationwide. The company also said it had exported mushrooms to Canadian biotech firm Mydecine. Reps from Mydecine denied these claims to GreenMarket Report, which first reported this story. In February 2021, rumors swirled around these inconsistencies, but Minerco doubled down, hosting a “Shroom Zoom” to dispel what it described as “unethical fear tactics.” However, by June of that year, the SEC had suspended its trading, citing “concerns regarding the adequacy and accuracy of information about the Company in the marketplace.”
Currently, the Minerco operation seems to have entirely shut down. Its X account has been inactive since 2021, and its former website (minercoinc.com) now redirects to an Indonesian gambling website. Its Facebook page is full of comments from investors griping about the thousands of dollars they’ve lost, and calling the company “crooked” and “scam artist(s).” If convicted, Jenge faces 20 years in prison.
DoubleBlind is a trusted resource for news, evidence-based education, and reporting on psychedelics. We work with leading medical professionals, scientific researchers, journalists, mycologists, indigenous stewards, and cultural pioneers. Read about our editorial policy and fact-checking process here.
DoubleBlind Magazine does not encourage or condone any illegal activities, including but not limited to the use of illegal substances. We do not provide mental health, clinical, or medical services. We are not a substitute for medical, psychological, or psychiatric diagnosis, treatment, or advice. If you are in a crisis or if you or any other person may be in danger or experiencing a mental health emergency, immediately call 911 or your local emergency resources. If you are considering suicide, please call 988 to connect with the National Suicide Prevention Lifeline.
DoubleBlind Mag Read More
