Psychics and Recreational Drugs: SEC Charges Hawaii SemiSub with Fraud

The Securities and Exchange Commission today filed charges against Semisub, Inc., Curtiss Edward Jackson, and Jamey Denise Jackson for allegedly conducting an offering fraud and misappropriating investor funds for their personal use.

The SEC’s complaint alleges that since 2017, defendants have raised approximately $4.7 million from over one hundred individuals across the United States through the fraudulent offer and sale of securities in Semisub, a company formed by the Jacksons purportedly for the construction and operation of a partially submersible vessel that would be used for commercial sightseeing tours in Hawaii. The complaint alleges that despite telling investors through offering documents and other communications that their funds would be used to construct the initial vessel and then construct and market additional vessels to potential buyers, defendants misappropriated a significant portion of the funds raised to pay for their personal expenses, including, among other things, private homes, vacations, groceries, psychics, and recreational drugs. According to the complaint, to perpetuate the fraud and solicit additional funds to support their personal spending, defendants repeatedly lied to investors about the status of construction of the vessel and potential business relationships with reputable entities and organizations.

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