SEC Brings Charges for a Pump-and-Dump Scheme Involving Jammin' Java
In an announcement on November 17, 2015, the Securities and Exchange Commission (SEC) charged numerous individuals with fraud involving an alleged pump-and-dump scheme using Jammin’ Java stock. The company operates as Marley Coffee and uses trademarks of Bob Marley to sell coffee products. The alleged scheme involved $78 million.
According the SEC announcement, there are allegations against Shane Whittle, former CEO of Jammin’ Java’s, stating that he allegedly operated a scheme with the help of three other parties — Wayne Weaver of the UK and Canada, René Berlinger of Switzerland, and Michael Sun of India — who operate offshore entities and live abroad. Whittle was accused of secretly gaining control of millions of shares of Jammin’ Java stocks by utilizing a reverse merger. Accusations also claim that he spread the stock to the three offshore entities, and they were later dumped on the public when prices soared after fraudulent promotional campaigns.
Twin brothers from Britain, Alexander and Thomas Hunter, were also charged with fraudulently promoting the stocks of Jammin’ Java to investors. They were both charged by the SEC in a previous case in which they allegedly touted penny stocks using a fake stock picking robot. The SEC charges also allege that Stephen Wheatley and Kevin Miller of the UK, and Mohammed Al-Barwani of Oman, are also charged with allegedly facilitating the illegal offering using offshore entities.
As punishment, the SEC is seeking disgorgement, injunctions, penalties, prejudgment interest, and bars against all involved individuals from operating within any capacity involving penny stocks. The SEC will also seek an officer-and-director bar against Whittle.
If you have lost money due to an investment in Jammin’ Java, contact Meyer Wilson. Schedule your free consultation with our firm and learn how we may be able to help you.
Watch our video to learn more about pump and dump schemes.