CEO Behind $29M Hawaiian Shipbuilding Fraud Sentenced to 13 Years in Jail

The long-standing fraud case involving the Semisub tour boat has reached its conclusion, with CEO Curtiss E. Jackson and his former wife, Jamey Denise Jackson, both sentenced to prison. The U.S. Department of Justice charged the couple in 2022, alleging they orchestrated a decade-long scheme that defrauded investors of over $29 million. The court found that they misled investors about the operational status of their prototype vessel, Semisub One, and continued to sell securities despite being barred from doing so.

Fraudulent Claims and Misuse of Funds

According to court documents, the Jacksons falsely assured investors that Semisub One was just weeks or months away from launching operations. They claimed to have secured agreements with government agencies and private investors to build a fleet of Semisubs, which they touted as a revolutionary luxury cruise experience. However, these assertions were proven to be misleading, as the company had not established the promised partnerships.

Despite being prohibited from selling securities in Pennsylvania and California, the Jacksons continued to solicit funds from investors across the United States. The Department of Justice revealed that they misappropriated investor money to finance extravagant lifestyles, including luxury homes in Hawaii and California, a Mercedes-Benz, lavish vacations, and even payments to psychics and for marijuana. The Semisub company, which aimed to provide a unique underwater viewing experience, faced significant operational challenges, with the prototype failing to meet design specifications during multiple inspections by the U.S. Coast Guard.

Legal Consequences and Threats

As the investigation progressed, Curtiss Jackson attempted to evade justice by trying to flee the U.S. aboard Semisub One, which was under criminal forfeiture proceedings. This occurred just before a scheduled bond revocation hearing. Additionally, he was accused of sending a threatening message to Jamey Denise, linking her to a violent scene from the television series “The Sopranos” that depicted the deaths of characters who cooperated with law enforcement.

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In May 2024, Curtiss Jackson was found guilty of multiple charges, including securities fraud, conspiracy, and witness tampering. He received a 13-year prison sentence on August 5. Meanwhile, Jamey Denise Jackson pleaded guilty to conspiracy to commit mail and wire fraud in January 2023 and was sentenced to two years in prison. This case serves as a stark reminder of the consequences of financial fraud and the importance of investor vigilance.