On May 25, 2022, during trading hours, the U.S. Department of Justice (DOJ) announced that Serhat Gumrukçu, the inventor and co-founder of Enochian BioSciences, had been arrested and charged in a murder-for-hire conspiracy.
On this news, Enochian BioSciences’s stock fell $2.17, or 37%, to close at $3.70 per share on May 25, 2022, on unusually heavy trading volume, damaging investors
Then, on June 1, 2022, market analyst Hindenburg Research published a report regarding Enochian BioSciences which is entitled “Miracle Cures and Murder For Hire: How A Spoon-Bending Turkish Magician Built A $600 Million Nasdaq-Listed Scam Based On A Lifetime Of Lies[.]” The report noted that the individual in whose murder Gumrukçu was implicated, Gregory Davis, “was murdered … just 19 days before Gumrukcu was scheduled to appear in court to defend himself against felony fraud allegations related to a 2016 deal with Davis” and that “[f]ederal prosecutors argued that the prospective merger deal that eventually resulted in Enochian going public served as a key motive for the murder.” The report also stated that “[u]nbeknownst to investors (but known to Enochian’s senior leadership) Gumrukcu’s latest arrest for a murder conspiracy is simply the most recent in a string of alleged crimes by Gumrukcu,” who “was arrested based on accusations of falsely posing as a doctor” in his native Turkey in 2012 and “[i]n February 2017, Gumrukcu was arrested by authorities after the State of California accused him of a slew of white-collar crimes, including fraud, identity theft, and check kiting – a total of 14 felonies.” The report further states that “[w]e have been unable to find any jurisdiction in which Gumrukcu is licensed as a medical doctor” and that “Gumrukcu looks to have purchased a fake Russian medical degree on the black market[.]”
On this news, Enochian’s stock fell $1.49, or 28% to close at $3.76 per share on June 1, 2022, damaging investors.