Jeffrey M. DeSalvo Charged in Coast Guard Fraud Scheme

Jeffrey M. DeSalvo, 35, of Picayune, Mississippi, is facing federal charges after allegedly lying to the U.S. Coast Guard and using suspended merchant mariner credentials to work as a boat captain on the Mississippi River. A five-count indictment unsealed today details a years-long scheme of deception that violated federal law and undermined maritime safety protocols.

The indictment, filed under Title 18, United States Code, Sections 1001 and 2197, accuses DeSalvo of making false statements and unlawfully using merchant mariner credentials. On February 4, 2015, DeSalvo entered into a settlement with the U.S. Coast Guard agreeing to surrender his credentials to avoid permanent revocation. Instead of complying, he submitted an affidavit claiming the credentials had been destroyed—knowing they had not.

Court documents reveal DeSalvo continued to use the suspended credentials to secure employment as a boat captain with four separate river operations. Each job relied on the assumption that his licensing was legitimate, putting crew, cargo, and public safety at risk. His actions breached federal trust and exploited loopholes in maritime compliance oversight.

If convicted on any single count, DeSalvo faces up to five years in federal prison, a $250,000 fine, and three years of supervised release. With five counts stacked against him, the potential penalties loom heavy—a stark reminder that falsifying federal documents carries serious consequences.

U.S. Attorney Evans emphasized that while the indictment marks a critical step, it is not a verdict. “An indictment is merely a charge,” Evans stated. “The guilt of the defendant must be proven beyond a reasonable doubt.” The prosecution is being handled by Assistant U.S. Attorney Spiro G. Latsis, who is building the case with evidence gathered through a thorough Coast Guard investigation.

The U.S. Coast Guard’s investigative work has been praised by federal prosecutors as instrumental in uncovering the fraud. As maritime enforcement tightens scrutiny on credentialing, DeSalvo’s case serves as a warning to others operating under suspended or revoked licenses: federal eyes are watching, and the penalties are real.