CEO Behind $29M Hawaiian Shipbuilding Fraud Sentenced to 13 Years in Jail
The U.S. Department of Justice reports that the long-running fraud case involving a tour boat known as the Semisub has finally concluded with the CEO and his then-wife each sentenced to jail. The U.S. filed fraud charges in 2022 against CEO Curtiss E. Jackson and his then-wife, Jamey Denise Jackson, alleging they stole more than $29 million in a decade-long scheme.
According to court documents and evidence presented at trial, the U.S. alleged that the Jacksons falsely told investors for years that the prototype vessel, Semisub One, was “weeks” or “months” away from beginning operations. The defendants also solicited funds based on false statements that Semisub had entered into agreements or developed relationships with government agencies and a private investment firm to build and sell a fleet of Semisubs for tens of millions of dollars — among other misrepresentations.
It was also reported that despite being barred from selling securities by authorities in the states of Pennsylvania and California, the defendants nonetheless continued to sell securities to investors across the U.S., including in those two states.
The Department of Justice detailed how the defendants used investor funds to pay for luxury residences in Hawaii and California, a Mercedes-Benz automobile, luxury vacations, psychics, and marijuana.
2017 construction photo released by Semisub of the nearly finished vessel
Semisub described itself as a specialized luxury cruise boat company with a proprietary vessel design. The boat was intended to allow passengers to look out underwater through special viewing windows while enjoying creature comforts inside, including high-end cuisine. The company reported that construction began in Long Beach, California, in 2008 on its first prototype and continued in Hawaii over the next 10 years. However, the U.S. Coast Guard said that the physical prototype boat differed materially from the naval architect's plans in 38 successive inspections, and when it finally won its COI in 2019, it only operated for a few months before engine trouble took it offline again.
As the fraud began to unravel, the U.S. contends that Curtiss Jackson further obstructed the official proceeding by attempting to flee the United States’ territorial waters aboard the Semisub One. At the time, the vessel was subject to criminal forfeiture proceedings, and he attempted to flee on the day before his bond revocation hearing.
Curtiss Jackson also sent a death threat to Jamey Denise during the investigation. The U.S. said he sent her a link to an online video containing graphic clips from The Sopranos television series depicting the deaths of several characters who had cooperated with the FBI.
In May 2024, Curtiss Jackson was convicted of securities fraud, conspiracy, mail fraud, wire fraud, witness tampering, and obstructing an official proceeding while on pretrial release. Yesterday, August 5, he was sentenced to 13 years in prison.
Jamey Denise Jackson pleaded guilty in January 2023 to conspiracy to commit mail fraud and wire fraud. She was sentenced to two years in prison.
Passenger Convicted of Attempted Sabotage for Fire on Finnish Cruise Ferry
A 29-year-old man has been sentenced to a suspended prison term for allegedly setting fire to a garbage can aboard the cruise ferry Viking Grace. At the time of the fire, the vessel was at sea with more than 1,000 passengers aboard, and the blaze could have become a serious incident if it had grown.
According to prosecutors, the suspect lit a garbage can ablaze in a closed onboard bar during a voyage in December 2024. The fire was set in the middle of the night, and was not discovered by the crew immediately; the bar was only used in the summer months and was not a space frequented by other passengers. There was little material in the can, and it burned out and extinguished itself without spreading, a stroke of luck for all on board. A deckhand later noticed a burned smell during rounds, investigated the space, and determined that there had been a fire.
Surveillance cameras captured the incident, and the footage showed the suspect bending down and using a lighter to ignite material in the can. He was arrested later that evening by members of the crew security team and questioned. He was taken ashore in the Aland Islands, and prosecutors charged him with attempted sabotage.
During the trial, he admitted that he was the person in the surveillance footage, but he denied having any memory of the incident. He said that he was aboard the ship for a Christmas party, had been drinking, and was heavily intoxicated at the time. (A security guard from the vessel confirmed that the suspect had been quite drunk when detained.)
This week, the court found him guilty of attempted sabotage and sentenced him to six months' imprisonment, plus court fees, according to Alands Radio. He reportedly told the court that he has given up alcohol.
Top image: Viking Grace (Smuliman / CC BY SA 4.0)
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