Hawaii couple charged with fraud over Semisub watercraft firm

A Hawaii couple was criminally charged with defrauding traders out of greater than $28 million with bogus claims about constructing a watercraft that might partially submerge to provide passengers underwater views, federal prosecutors mentioned Tuesday.

The Division of Justice mentioned in an indictment unsealed this week that Curtiss and Jamey Jackson used a considerable portion of the cash for their very own profit, together with for luxurious houses in California and Hawaii, a Mercedes-Benz, holidays, psychics and marijuana.

The couple was charged with securities fraud, conspiracy, mail fraud and wire fraud in an indictment unsealed this week. Every cost carries a most penalty of 20 years in jail.

The couple was additionally sued by the Securities Alternate Fee for fraud in August over their actions in reference to their firm, Semisub Inc., based mostly in Hawaii.

A lawyer for Curtiss Jackson didn’t instantly reply to a request for remark. An legal professional for Jamey Jackson was not listed.

The couple is accused of deceptive greater than 400 traders, routinely telling them over a decade {that a} prototype vessel was “weeks” or “months” away from beginning operations.

The 2 additionally allegedly lied about their relationship with Hawaii Governor David Ige, claiming him as a detailed buddy and supporter of their enterprise. In addition they falsely advised traders that they had relationships or agreements with events together with the Division of Homeland Safety and personal fairness large Blackrock, in accordance with the indictment.

The couple reportedly offered securities for the corporate to traders throughout the nation, together with in Pennsylvania and California, the place that they had been barred from promoting securities in 2008 and 2009, respectively.

The corporate web site, Semisub.com, continues to be on-line and claims the Jacksons operated a 44-passenger semisubmersible vessel on Maui for “quite a few years” earlier than shifting to develop their very own car. The location claims that “new vessel design is slated to be accomplished in early 2020.”

A detention listening to is about for Wednesday and the trial is about to start in December. 

Curtiss Jackson made his preliminary courtroom look Monday in Hawaii, the Justice Division mentioned. Jamey Denise Jackson made her preliminary courtroom look in Connecticut.

An worker who picked up the cellphone on the firm’s listed cellphone quantity declined to offer a right away remark.