Child Predator investigation leads to jail sentence for child pornographer

Dover – The Attorney General’s Office announced that a Smyrna resident charged with child
pornography offenses following an investigation initiated by the Delaware Child Predator Task Force
pled guilty today in Kent County Superior Court. Stephen W. Carman, age 54, a registered sex
offender, pled guilty to 9 counts of Dealing in Child Pornography and was immediately sentenced to
18 minimum mandatory years in prison by Superior Court Judge Robert B. Young, followed 6 months
of either home confinement or work release, followed by 18 years of probation.

“I am proud of the work that our Child Predator Task Force is doing every day to protect our
kids and our families,” Biden said. “Our streets are safer because this child predator is serving a
substantial minimum mandatory prison sentence.”

Carman’s arrest on July 28, 2010 followed a Task Force investigation into the possession of
child sexual exploitation images on the internet. Task Force member agencies, including the Delaware
Department of Justice, Delaware State Police, and Smyrna Police Department, and agents from the
U.S. Immigration and Customs Enforcement (ICE) executed a search warrant at Carman’s Smyrna
residence, at 432 Smyrna Clayton Blvd and seized computers and other digital evidence were seized,
as well as fireworks and a small amount of marijuana. An initial forensic analysis revealed multiple
images of child pornography, including images of young children being sexually assaulted by adult
males. As a result, Carman was arrested by Smyrna Police and was charged with multiple counts of
Dealing in Child Pornography.

While Carman was being processed at Smyrna Police headquarters he made a phone call that
led the Task Force to believe that additional evidence was hidden at his residence and the Child
Predator Task Force executed an additional search warrant at Carman’s residence, seizing additional
digital media, including a flash drive secured by duct tape underneath the kitchen sink. That evidence
revealed thousands of images of child pornography, including images and videos of young females
being sexually assaulted by adult males. As a result, Carman was rearrested on July 29 and charged
with additional counts of Dealing in Child Pornography, as well as attempting to destroy physical
evidence and criminal solicitation.

In 2008, the Attorney General’s office drafted legislation that imposed harsher consequences
for the possession and distribution of child pornography. House Bill 421, which was enacted that same
year, established mandatory minimum prison sentences for distributing child pornography.
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ATTORNEY GENERAL – Attorney General’s Office secures criminal indictments in investor fraud cases
Wilmington – The Delaware Department of Justice announced today that its Securities Unit has
obtained an indictment against a New Jersey man for allegedly defrauding a New Castle County
resident out of more than $30,000. Edward A. Ducoin, age 45, of Marlton, New Jersey, was indicted
yesterday by the New Castle County Grand Jury on eight charges, including Securities Fraud, Theft,
and Sale of Unregistered Securities.

Ducoin, a principal of Moto Cycle Corporation, allegedly accepted over $30,000 from a
Delaware investor from 2005 through mid 2010 and, in return, issued stock certificates in the name of
Moto Cycle Corporation. Moto Cycle Corporation manufactures specialized motorcycles and helmets
through licensing agreements with NASCAR drivers. In addition, Ducoin allegedly solicited funds
from the investor for a trip abroad to obtain capital from international investors. The Delaware
investor contacted the Securities Division in July 2010, after having received no returns on the
investments and after unsuccessfully requesting a return of the principal amounts invested.

Yesterday’s action follows another recent securities fraud indictment that the Attorney
General’s Securities Unit obtained against a Delaware man. On November 8, 2010, the New Castle
County Grand Jury indicted Reginald Johnson, age 46, of Wilmington, on charges of Theft, Securities
Fraud, Selling an Unregistered Security, and Acting as an Unregistered Issuer or Agent. The
indictment charges that between September, 2006 and May, 2007, Johnson sold securities in Lasso
Key Technologies and converted the proceeds for his personal use. The indictment further charges that
Johnson was not properly licensed with the Delaware Securities Unit to sell securities and that the
securities he sold were not registered as required by the Delaware Securities Act.

“We’re taking aggressive law enforcement action to protect Delaware’s investors and enforce
our Securities laws,” Attorney General Beau Biden stated. “Any investor who believes they may be a
victim of investment fraud is urged to contact our Securities Unit at (302) 577-8424.”

The Attorney General’s Office, through its Securities Unit, enforces the Delaware Securities
Act, which regulates the sale of investment products and the activities of investment professionals in
Delaware. The Unit investigates and prosecutes securities fraud and licensing violations by investment
brokers and advisers. Delaware investors are encouraged to report suspected incidents of investment
crime and fraud by calling the Attorney General’s Securities Fraud Hotline at (302) 577-8424.

The Delaware Department of Justice reminds the public that an indictment is merely an
allegation and is not evidence of guilt. Defendants are presumed innocent and are entitled to a jury
trial at which the state bears the burden of proving each charge beyond a reasonable doubt.
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