Kenneth McCulloch, a developer at Precursor Games—the developers who want to create a sequel to Eternal Darkness—is now facing child pornography charges according to Bullet News Niagara and the Niagara Regional Police Service.
McCulloch is being charged with "one count each of possession of child pornography, making child pornography available and accessing child pornography," to be specific.
Last month, Precursor Games held a Kickstarter for Shadows of the Eternals, but the campaign was suspended. In a post on the Precursor Games forums, Paul Caporicci, CEO of Precursor Games—a studio that formed from the ashes of Silicon Knights—says that they learned of the charges today and that due to their serious nature, McCulloch is "no longer affiliated in any way with Precursor Games."

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According to the Bullet News report, McCulloch is currently in custody, pending bail. We've contacted Precursor Games about the matter and will update this post as soon as we hear back.
Update: Here's the police report from Niagara Regional Police Service.
CRIME: St. Catharines man facing child pornography charges [Bullet News Niagara]