The United States Attorney's Office announced that a Grand Jury sitting in South Bend, Indiana, returned a seven count indictment against James Allen Hatch, a 45-year-old from Michigan City, related to child pornography.

The U.S. Attorney’s Office says the investigation into Hatch began after the National Center for Missing and Exploited Children (NCMEC) received two tips. Investigators say the first tip led Immigration and Customs Enforcement agents to Hatch’s email account where they allege child pornography was transmitted. The other tip informed agents that Hatch was traveling to Wisconsin with two young boys for sexual purposes.

Agents with the Wisconsin Department of Justice learned of the tips and began surveying the hotel room of Hatch. Officials obtained a search warrant and found three young boys with Hatch along with a small quantity of marijuana.

The three boys were all minors and were taken into protective custody before being returned to their parents.

Police say Hatch was arrested by lay enforcement for Child Enticement-Sexual Contact, Possession of Marijuana, Possession of Drug Paraphernalia, and Contributing to the Delinquency of a Child.

On April 4, 2008, ICE agents executed a search warrant at Hatch’s home near Michigan City, Indiana. Agents say they seized a computer, handcuffs, several videotapes, computer peripherals, and a small quantity of marijuana.

Investigators say that subsequent computer forensic analysis by ICE agents uncovered hundreds of images of child pornography on the computer. Examination of two videotapes revealed that they depict children engaging in sexual conduct, including one of the boys who was with Hatch in Wisconsin.

ICE agents in Indiana obtained an arrest warrant for Hatch on April 10. After Hatch posted bond in Wisconsin and was released, Hatch returned to Indiana where he was arrested by ICE agents on the federal warrant.

Hatch was taken to a federal magistrate judge for an initial hearing in South Bend on April 11 and subsequently detained on April 24, 2008 pending return of an indictment.

Hatch faces seven charges in all. Counts One and Seven allege that Hatch transported child pornography in interstate commerce; Counts Two and Three allege that Hatch transported one or more minors across a state line to engage in sex; Counts Four and Five allege that Hatch enticed one or more minors to engage in sexually explicit conduct for the purpose of producing video tapes of the conduct; and Count Six alleges that Hatch possessed child pornography on his computer.

Hatch remains in federal custody. It is anticipated that he will be arraigned in the next few days.

Officials say several law enforcement agencies assisted Immigration and Customs Enforcement agents in the investigation, including the St. Joseph County High Tech Crimes Unit, the Indiana State Police, and the St. Joseph County Prosecuting Attorney’s Office.

This case has been assigned to and will be prosecuted by Assistant United States Attorney Kenneth M. Hays.