Oakland County businessman charged in multi-million penny stock scam
FOX 2 - Robert Shumake is a guy who keeps reinventing himself - a businessman, an author, a spiritual leader of a church. One thing remains the same, he always seems to get himself in trouble.
Rob Wolchek has been doing Hall of Shame stories on Shumake for years
In 2017 they spoke when Shumake was in Oakland County Court.
Wochek: "Well, we're trying to talk to Robert. Would he like to say anything?"
Shumake: "To a real journalist, certainly."
Wolchek: "Well I'm here."
In 2010 Wolchek did a story where Shumake literally ran away from him. We'll look at more of the old messes Robert got himself into in a minute. First, here's the new mess.
Robert Shumake been indicted by the feds for allegedly being the mastermind of a multimillion-dollar penny-stock scam. The indictment: The United States of America versus Bobby Shumake Japhia, AKA Robert Samual Shumake.
Shumake is charged with one count of securities fraud and one count of obstruction which carry a maximum penalty of 20 years in prison on each count.
According to the press release, Shumake is charged with "defrauding investors in Minerco Inc. leading to millions of dollars in investor losses" as well as "obstruction of a Securities and Exchange Commission proceeding by destroying evidence."
The indictment lays out a 'pump and dump' stock scheme where Shumake allegedly sold one billion shares of Minerco stock to manipulate the price. It claims Shumake made over $2 million from the scheme.
Minerco was promoted as a company working on research into Psilocybin medicine according to the indictment.
It alleges: "Shumake concealed his role with Minerco even though he controlled all aspects of Minerco and ran it's day-to-day operations."
Also cited in the indictment are several of Wolchek's old Hall of Shame stories on Shumake which show a bit of a pattern.
In 2010, Wolchek was looking into a company called Mortgage Auditors of America. He interviewed more than 100 of their customers who said the company had taken their money and not performed their services. Many of these victims were crying and about to lose their homes.
Wolchek was able to link Shumake to the company. His first meeting with him he ran from Wolchek.
Then, in a sit-down interview, Shumake denied wrongdoing but admitted this:
"I invested in the company, hired presidents, CEOs, chief operations officers, national sales directors, everyone to run and manage the company," he said.
Wolchek: "So you were the boss?"
Shumake: "Um, yes, you could say that."
In 2015, the Michigan Attorney General charged Shumake with that scheme. But Robert Shumake was a fugitive living in Africa, portraying himself as a successful American businessman.
In 2017, he came home and was arrested. When in court, he surrounded himself with a wall of big guys.
Wolchek: "Robert, would you like to say anything? In an effort to be fair ..."
The company was found guilty of several felonies and Robert pleaded guilty to two misdemeanors. But Judge James Alexander had strong words for the defendant.
"You are a criminal," Alexander said. "You've pled guilty to crimes and now you are a criminal."
The judge also mentioned his overseas activities.
"While you're on probation, you must not leave the United States," said the judge. "I don't want you representing my country. You're a criminal."
Robert Shumake paid restitution of more than $30,000 and was sentenced to time served. Shumake is no longer on probation for that case.
He then popped up on FOX 2 calling himself 'Shaman Shu' running a church in Detroit which promoted the use of magic mushrooms and was raided by Detroit police in 2023. There were no criminal charges filed, but the church was closed for being an unlicensed dispensary.
More coverage:
- Oakland County businessman Robert Shumake behind bars
- Judge calls businessman Robert Shumake 'a criminal'
- Psychedelic church that gives members mushrooms raided
- Hall of Shame: Robert Shumake - big shot busted
Our Brandon Hudson interviewed 'Shu' several times.
"I'm totally stunned," Shumake said at the time. "It's a true 'Matrix' moment right now. To actually go through doing everything that I needed to do, to legalize, de-criminalize, to put together systems so people could have healing."
Which brings us to the present - the shaman is now "tripping on justice" with a federal fraud case which could send him to prison for a long time.
Wolchek contacted Robert Shumake Thursday afternoon via text and he responded with, "Wolchek, great to hear from you. I will send you a statement tomorrow morning."
