DENVER—Today Attorney General Cynthia H. Coffman announced that the Statewide Grand Jury has indicted Shannon P. Murphy on five counts of securities fraud. Murphy is accused of soliciting and accepting investment opportunities into companies Epic Mineral Resources, Inc. (EPIC), Murphy Mining International, LLC (MMI), and Murphy Mining and Exploration, LLC (MME). Murphy represented to investors that their investment funds would be used for mining operations and would pay substantial returns.
Attorney General Cynthia Coffman stated the following after indictment was handed down: “Securities fraud perpetuated against Colorado consumers is an enforcement priority of my Office. We appreciate the hard work of our partners in law enforcement who assisted on this investigation.”
The indictment alleges that between July of 2009 and December 2014, Murphy solicited approximately fifty-five individual investors in Arapahoe, Boulder, Broomfield Douglas, Elbert, El Paso, Larimer, Teller and Weld Counties. The indictment alleges that Murphy represented to investors that mining operations in development were very close to production. In fact, most operations were far from producing mines. Murphy also solicited and accepted investments from individuals from several other states, including: California, Florida, Illinois, Iowa, Nebraska, Nevada, Ohio, Texas, and Washington.
Murphy allegedly used some investor funds on expenditures unrelated to the investment, including personal expenses. Murphy convinced investors to make subsequent investments in an ongoing series of maintenance and mining operations, knowing that he could not generate the promised returns.
These investments, solicited and accepted by Murphy, resulted in investor losses of approximately six million dollars.
The Attorney General’s Office worked with the Federal Bureau of Investigations and the Internal Revenue Service-Criminal Investigation during the course of this investigation.
It is important to note that the filing of criminal charges is merely a formal accusation that an individual committed a crime. Every defendant is presumed innocent until and unless proven guilty.