( CNN ) -- An American who founded a home for needy children in Haiti more than 10 years ago has been accused of sexually abusing some of the same boys he set out to help , the U.S. Department of Justice announced Thursday . Project Pierre Toussaint operated on this street in Cap-Haitien , Haiti . An American allegedly abused boys there . Douglas Perlitz , 39 , who was indicted this week by a grand jury in Fairfield County , Connecticut , faces 10 counts related to the sexual abuse of nine boys for about a decade , the Justice Department said . Seven of those counts are for traveling outside of the United States with the intent to have sex with minors , and three counts are for engaging in sexual conduct with minors in a foreign place , according to the indictment . Perlitz was arrested Wednesday morning at his home in Colorado , but he had lived for years in Haiti , the Justice Department said in a news release . The Haiti Fund Inc. , the nonprofit fundraising arm of his project , was incorporated in Connecticut , where Perlitz had attended Fairfield University . A U.S. magistrate ordered Perlitz detained pending a federal court hearing Friday in Denver . Perlitz was in custody Thursday , and it was not clear whether he had retained an attorney . The Justice Department said Perlitz used his position as director of the Project Pierre Toussaint in Haiti to manipulate and abuse the boys . He allegedly enticed the nine boys with promises of food and shelter and with gifts such as cell phones and cash , the indictment states . If convicted , Perlitz faces a maximum of 30 years in prison and fine of $ 2.5 million , according to the department . Haiti 's abject poverty , threadbare social-service network and barely functioning legal system combine to make the country 's street kids particularly vulnerable to exploitation . Despite its lush tropical setting , the country is the poorest in the Western Hemisphere and has the highest rates of mortality among infants and children under five years of age . One-third of Haitian children under five suffer chronic malnutrition , according to United Nations statistics ; just over half of school-age kids are enrolled in schools . With the state unable to alleviate those ills , private foreign charities work hard to fill the void . Perlitz -- and his Project Pierre Toussaint -- were seen as bright young examples of how outside agencies could make a difference in the lives of destitute Haitian children , offering food , education and sanctuary from the perilous life on the streets . In 2002 , Fairfield University , Perlitz 's alma mater , honored his efforts by making him its commencement speaker . One volunteer who traveled twice to Project Pierre Toussaint to run a soccer and basketball camp there said the charges against Perlitz were shocking . `` I do n't believe one ounce of it , '' Matt Pawlick of Miami , Florida , told CNN . `` He had a passion and love to help those kids grow . '' According to the indictment , Perlitz first traveled to Haiti as a student at Fairfield University and became inspired to build a school there . In 1997 , he received a grant from the Roman Catholic Order of Malta to start a center to help street children , which grew into a boarding school for boys that provided meals , sports activities and classroom instruction , the indictment states . The school was in Cap-Haitien , Haiti . Once the Haiti Fund was created , it raised more than $ 2 million between 2002 and 2008 , funds that were transferred to Perlitz to run the project , the indictment said . According to the court document , Perlitz would take some of the minors to a restaurant , give them food and alcohol and then encourage them to spend the night with him . The indictment alleges that Perlitz showed homosexual pornography to some of the youths as well . In 2007 , Haitian journalist Cyrus Sibert was the first to report about rumors of sexual abuse at the school . `` I found many children who told me the situation at the project , '' Sibert told CNN , referring to the allegations . His reports spurred investigations by Haitian authorities as well as by the board of directors of the Haiti Fund . The indictment alleges that `` Perlitz used his relationship with a religious leader and influential board members to continue to conceal , and attempt to conceal , illegal sexual conduct , '' in one instance by barring investigators from entering his room , and by helping remove two computers that were locked in a safe . As attention over the allegations grew , the board ultimately dismissed Perlitz in 2008 , Paul Kendrick , an advocate for victims of abuse by clergy familiar with the case , told CNN . Kendrick , a fellow Fairfield University graduate who met Perlitz during a visit to Haiti , said the removal proved controversial among the backers of Project Pierre Toussaint . By early 2009 , the school was closed , Sibert said . Board members referred questions from CNN to an attorney , who was not immediately available .
Feds : Douglas Perlitz , 39 , faces 10 counts in alleged abuse of nine boys . Perlitz was arrested at his home in Colorado , but had lived for years in Haiti . Perlitz was director of the Project Pierre Toussaint in Haiti . If convicted , Perlitz faces up to 30 years in prison and fine of $ 2.5 million .