Sub's Funds Sink as Fraudsters Buy Homes, Vacations, Psychics!

SEC v. Semisub, Inc.; Jamey Denise Jackson — U.S. Securities and Exchange Commission Litigation Release No. 26592, dated July 23, 2026.

The SEC charged Semisub, Inc. and a former principal, Jamey Denise Jackson, with an offering fraud. They allegedly raised about $4.7 million from over 100 investors by falsely promising to use the funds for a tour boat business, but instead misappropriated a significant portion for personal expenses. Semisub and Jackson have consented to final judgments that would permanently enjoin them from violating securities laws and order Jackson to pay disgorgement and prejudgment interest.

In Plain English

Imagine you want to start a boat tour business. You tell people you need money to build a special boat. You promise them their money will be used for the boat and the business. But instead of building the boat, you secretly spend a lot of the money on vacations, houses, and other personal things. You also lie to the people who gave you money, telling them the boat is almost ready when it's not. That's what happened here, and the government stepped in to stop it and get money back.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. The Business Idea In 2017, Semisub, Inc., along with principals Curtiss Edward Jackson and Jamey Denise Jackson, began seeking investments for a company that would build and operate a partially submersible vessel for sightseeing tours in Hawaii.
  2. Raising Funds Under False Pretenses The defendants allegedly told investors that their money would be used to construct the initial vessel and then to build and market additional vessels. They raised approximately $4.7 million from over one hundred individuals across the United States through the offer and sale of Semisub securities.
  3. Misappropriating Investor Funds Instead of using the funds as promised, the defendants allegedly misappropriated a significant portion to pay for personal expenses. These included private homes, vacations, groceries, psychics, and recreational drugs.
  4. Lying to Investors To keep the fraud going and obtain more money, the defendants repeatedly lied to investors. They provided false updates about the construction status of the vessel and fabricated potential business relationships with reputable entities.
  5. SEC Intervention The SEC filed a complaint on August 3, 2022, alleging this offering fraud and misappropriation of investor funds. The SEC's investigation uncovered the alleged scheme that ran from 2017 through at least February 2022.
  6. Settlement with Semisub and Jackson On July 16, 2026, Semisub, Inc. and Jamey Denise Jackson consented to proposed final judgments. These judgments would permanently enjoin them from violating securities laws and order Jackson to pay disgorgement and prejudgment interest.
  7. Criminal Case and Restitution In a parallel criminal action, Jamey Denise Jackson pleaded guilty to conspiracy to commit mail and wire fraud. She was sentenced to 24 months in prison and ordered to pay restitution of $16,745,132.58, which satisfies her SEC disgorgement obligation.

The Enforcement Action

On July 16, 2026, the SEC filed proposed final judgments as to Defendants Semisub, Inc. and Jamey Denise Jackson, one of Semisub’s former principals, whom the SEC charged with allegedly conducting an offering fraud and misappropriating investor funds for personal use. The SEC’s complaint, filed on August 3, 2022, alleges that from 2017 through at least February 2022, Semisub, Denise Jackson, and co-defendant Curtiss Edward Jackson 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 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, the 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, the defendants repeatedly lied to investors about the status of construction of the vessel and potential business relationships with reputable entities and organizations. Semisub and Denise Jackson consented to the entry of the final judgments, subject to court approval, that would permanently enjoin them from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and order Denise Jackson to pay disgorgement and prejudgment interest of $1,901,762, which shall be deemed satisfied by the restitution order entered against her in the parallel criminal action U.S. v. Curtiss E. Jackson and Jamey Denise Jackson, D. Haw. Crim. No. 22-00093 (JMS). Denise Jackson pleaded guilty to conspiracy to mail fraud and wire fraud in the criminal action, and on August 7, 2025, the court sentenced her to 24 months in prison and two years of supervised release and ordered her to pay restitution of $16,745,132.58. The SEC’s investigation was conducted by Andrea Fox, Jennie B. Krasner, and Devon Staren, and supervised by Stacy L. Bogert. The litigation, which remains ongoing as to Curtiss Jackson, is being led by Patrick R. Costello and supervised by James Connor.

Named in this action: Semisub, Inc., Jamey Denise Jackson, Curtiss Edward Jackson.