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Mar-07-2010CORRECT: SEC Charges Sean David Morton, 'America's Prophet', With Fraud(topic overview)
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MANHATTAN (CN) - A psychic fraudulently raised $6 million by telling investors he could predict the stock market, the Securities and Exchange Commission claims in Federal Court. Sean David Morton, who calls himself "America's Prophet," claimed he has been accurately predicting the stock market's acitvity for the past 14 years. Officials say Morton used his newsletter, Web site, appearances on a syndicated radio show and appearances at public events to promote his alleged psychic abilities. "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money," said George Canellos, director of the SEC's New York office. The SEC says Morton raised more than $6 million from more than 100 investors for his Delphi Associates Investment Group, and invested about half of the funds with foreign currency trading firms. Instead of investing the money into foreign currency trading firms as promised, Morton or his wife diverted some of it, including at least $240,000 to their own nonprofit religious organization, Prophecy Research Institute, the SEC says. Charges also were filed against three companies Morton owns with his wife under the umbrella of the Delphi Associates Investment Group. [1] Updated More from The New York Times here. It may read as if it's ripped from the pages of The Onion, but yes, it's real. The Securities and Exchange Commission on Thursday sued a well-known fortune teller who called himself "America's Prophet," charging him with securities fraud for swindling investors out of $6 million with the promise that he could accurately predict market moves. (Read the lawsuit after the jump.) The fortune teller, Sean David Morton, 51, is accused of inducing more than 100 investors into pouring money into the Delphi Investment Group through his newsletter, Web site and guest spots on a nationally syndicated radio show. Among his pitches: "I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years.''' S.E.C. officials on Thursday were less impressed by his claims. '''Morton'''s self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money,''' George S. Canellos, the director of the S.E.C.' s New York regional office, said in a statement. Mr. Morton's wife, Melissa Morton, and their nonprofit religious organization, Prophecy Research Institute, were listed as relief defendants, meaning that while they are not accused of a crime, the S.E.C. is seeking a disgorgement of their share of the ill-gotten gains. Neither the couple, nor a representative for their organization could be reached for comment. [2] You have to give Sean David Morton, the head of Delphi Associates Investment Group, high marks for self-promotion. According to a complaint filed Thursday in the U.S. District Court for the Southern District of New York (Securities and Exchange Commission v. Sean David Morton, et. al.), Morton solicited investors by falsely claiming he had ". called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years." He issued a monthly newsletter, had a nationally syndicated radio show, and made appearances at public events, touting his psychic abilities. He dedicated one issue of his newsletter to his stepfather, who he claimed ". raised me to know what is right and I would not be the person I am without him." The SEC complaint raises serious questions about exactly what kind of person he is. According to George S. Canellos, director of the SEC's New York Regional Office, "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money." [3]
Sean David Morton, who was on Thursday charged on a number of counts of securities fraud by the Securities and Exchange Commission (SEC), raised the funds by telling potential investors he could accurately predict stock market movements using psychic abilities. In one edition of his newsletter, Mr Morton, whose website shows him with the likes of Mel Brooks and Sting, said: "I have called all the highs and lows of the markets, giving exact dates for rises and crashes over the last 14 years." The SEC alleges he invested about half of the money with currency trading firms, while diverting some of the funds to a variety of other uses, including donating at least $240,000 to a religious body called the Prophecy Research Institute, which he ran. The regulator alleges Mr Morton "falsely touted his historical success" to more than 100 investors in the Delphi Investment Group through his monthly newsletter, his website, appearances on a nationally-syndicated radio show and personal appearances. [4] A self-proclaimed psychic who called himself "America's Prophet" and claimed the ability to predict stock market changes was charged today by the Securities & Exchange Commission with multi-million dollar securities fraud. Sean David Morton started to solicit investors in the summer of 2006 by promising to use his psychic abilities for investment guidance, the SEC alleged in the complaint. Along with his newsletter, Morton also used his website, public speaking engagements, and appearances on a nationally syndicated radio show to promote his Delphi Investment Group. According to George Canellos, director of the SEC's New York Regional Office, "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money." [5] Washington, D.C., March 4, 2010 ''' The Securities and Exchange Commission today charged a self-proclaimed psychic who fraudulently raised $6 million after telling investors he could predict stock market highs and lows. The SEC's charges were filed in U.S. District Court for the Southern District of New York against Sean David Morton, who bills himself as "America's Prophet," as well as three corporate entities that Morton co-owns with his wife Melissa Morton under the umbrella of the Delphi Associates Investment Group. According to the SEC's complaint, Morton began soliciting investors around the summer of 2006 by telling them that he would use his psychic expertise to provide investment guidance to his investing team. [6] STAFF WRITER 17:55 HRS IST Washington, Mar 5 (PTI) The U.S. market regulator has filed charges against a "self-proclaimed psychic" who allegedly raised more than USD 6 million by duping over 100 investors with the promise of predicting stock market highs and lows. Sean David Morton, who bills himself as "America's Prophet", solicited investors in 2006 by telling them that he would use his "psychic expertise to provide investment guidance to his investing team", according to the U.S. Securities and Exchange Commission (SEC). The regulator has filed complaint against Morton and three corporate entities that he co-owns with his wife Melissa Morton under the name of Delphi Associates Investment Group. [7]
WASHINGTON — A man calling himself "America's Prophet" and claiming the psychic ability to predict the stock market's highs and lows was accused by federal regulators Thursday of bilking $6 million from more than 100 investors. The Securities and Exchange Commission filed a civil lawsuit against Sean David Morton and three companies he is said to own under the name Delphi Associates Investment Group. The SEC says Morton lied to investors about his financial successes and the use of the investors' money. [8]
Sean David Morton, a nationally recognized psychic who bills himself as America's Prophet, has been charged by the Securities and Exchange Commission with engaging in a multi-million-dollar stock offering fraud. The SEC charged Morton and three corporate entities he owns on Thursday with fraud for claiming to use his psychic powers to provide investment guidance to his team. Beginning in or around the summer of 2006, Morton allegedly solicited individuals to invest in several companies that he and his wife, Melissa Morton, controlled - Vajra Productions LLC, 27 Investments LLC, and Magic Eight Ball Distributing Inc. - under the umbrella of the Delphi Associates Investment Group. According to the SEC, Morton falsely touted his historical success in psychically predicting the rises and falls of the stock market. He claimed that he would use the funds to trade in foreign currencies and distribute the trading profits among the investors. [9] On March 4, 2010, the Securities and Exchange Commission filed a civil injunctive action in the United States District Court for the Southern District of New York charging Sean David Morton, a nationally-recognized psychic who bills himself as "America's Prophet," and three corporate entities that Morton co-owns, for engaging in a multi-million dollar offering fraud. Beginning in or around the summer of 2006, Morton solicited individuals to invest in one of several companies he and his wife, Melissa Morton, controlled - defendants Vajra Productions, LLC, 27 Investments, LLC, and Magic Eight Ball Distributing, Inc. (referred to herein as the Entities and, along with Morton, referred to as the Defendants) - under the umbrella of the Delphi Associates Investment Group (Delphi Investment Group). According to the Commission's complaint, in soliciting these individuals, Morton claimed that he would use his psychic expertise to provide investment guidance to his investing team, and he falsely touted his historical success in psychically predicting the various rises and falls of the market. Morton further claimed that he would use the pooled funds to trade in foreign currencies and distribute pro rata the trading profits among the investors. According to the complaint, Morton lied to investors about his past successes, and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds, and that the profits in the accounts were audited and certified. [10]
As far as SEC targets go, well, this one feels like some pretty low-hanging fruit. The SEC recently filed a civil suit against Sean David Morton, alleging he lied about using his psychic expertise in investing more than $6 million from investors. Morton, of Hermosa Beach, Calif., who the SEC said bills himself as "America's Prophet," solicited individuals over nationally syndicated radio broadcasts, public appearances and newsletters to put money into a fund he called Delphi Associates Investment Group. He claimed his psychic ability would be used to invest in foreign currencies, the SEC said in a suit filed in the U.S. District Court for the Southern District of New York (complaint not available). [11] In one newsletter to potential investors, Morton falsely stated: "I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years." Morton used his monthly newsletter, his Web site, his appearances on a nationally syndicated radio show, and appearances at public events to promote his psychic abilities. Morton made numerous materially false representations relating to his psychic abilities in order to solicit investors for the Delphi Investment Group. "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money," said George S. Canellos, Director of the SEC's New York Regional Office. The SEC alleges that Morton told investors he would pool their funds to trade in foreign currencies. According to the SEC's complaint, Morton lied to investors about his past successes and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds. He falsely claimed that the profits in the accounts were audited and certified. [6] The SEC said that in soliciting these individuals, Morton claimed that he would use his psychic expertise to provide investment guidance to his investing team, and falsely touted his historical success in psychically predicting the various rises and falls of the market. The SEC noted that Morton wrote to potential investors in his Newsletter dated July 20, 2006, "I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years." Morton further claimed that he would use the pooled funds to trade in foreign currencies and distribute pro rata the trading profits among the investors. The SEC says Morton lied to investors about his financial successes and about key aspects of the Delphi Associates Investment Group, including the use of the investors' money. The SEC alleges that While Morton promised investors that all of their funds would be used to trade foreign currencies, he invested only about half of the funds with foreign currency trading firms and diverted some of the investor funds. The SEC said, the Mortons used at least $240,000 of the funds for their own nonprofit religious organization, Prophecy Research Institute, or PRI. [12]
Morton fraudulently raised a total of more than $6 million from over 100 investors. Morton used his monthly newsletter, his Web site, his appearances on a nationally syndicated radio show called Coast to Coast AM, and appearances at public events, to promote his psychic abilities. Morton wrote to potential investors in his July 20, 2006, newsletter that: I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years. The SEC alleges that this assertion, like others Morton made in soliciting investors, is false. Morton's Web site shows him posing with numerous celebrities, including Mel Brooks, Robin Williams, Anthony Michael Hall, the late Farrah Fawcett, Ed O'Neill, Sting, Kevin Nealon and Moon Unit Zappa. According to the SEC complaint, Morton placed investor funds in the bank accounts of one of the entities he controlled, and commingled the funds among the entities' accounts. According to the complaint, while Morton promised investors that all of their funds would be used to trade foreign currencies, he in fact invested only about half of the funds with foreign currency trading firms. Unbeknownst to investors, the Mortons diverted some of the funds, including at least $240,000, to their nonprofit religious organization, Prophecy Research Institute. [9]
All together, Morton fraudulently raised more than $6 million from more than 100 investors for the Delphi Investment Group. According to the Commission's complaint, Morton used his monthly newsletter, his website, his appearances on a nationally syndicated radio show called Coast to Coast AM, and appearances at public events, to promote his psychic abilities. Morton made numerous materially false representations relating to his psychic abilities in order to solicit investors for the Delphi Investment Group. Morton wrote to potential investors in his July 20, 2006 newsletter that: "I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years." (emphasis in original.) The Commission alleges that this assertion, like others Morton made in soliciting investors, is false. [10]
As in Extra Sensory Perception. The trouble is, he did not, actually, and so now he is being sued by the SEC. Morton made numerous materially false representations relating to his psychic abilities in order to solicit investors for the Delphi Investment Group. Morton wrote to potential investors in his July 20, 2006 newsletter that: "I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years." (emphasis in original.) The Commission alleges that this assertion, like others Morton made in soliciting investors, is false. If he had been actually psychic, it would have been a different story. [13]
The SEC has charged Sean David Morton, a self-described "natural psychic, trained Remote Viewer, intuitive consultant, investigative reporter, and accomplished award winning director, screenwriter and film and TV producer," with securities fraud. Morton, who is known as "America's Prophet" allegedly solicited investors through a newsletter in which he claimed, "I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years." His company is called Delphi Associates. [14] On his personal website, "natural psychic and Remote Viewer" Sean David Morton claims to have predicted everything from the 1989 San Francisco earthquake to Bill Clinton's impeachment to the burst of the dotcom bubble. That doesn't impress the SEC, who filed a lawsuit against Morton yesterday, alleging that he committed $6 million worth of securities fraud by claiming he could see into the future. Morton claimed that he would use his psychic expertise to provide investment guidance to his investing team, and falsely touted his historical success in psychically predicting the various rises and falls of the market. Morton further claimed that he would use the pooled funds to trade in foreign currencies and distribute pro rata the trading profits among the investors. Morton lied to investors about his past successes, and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds, and that the profits in the accounts were audited and certified. Whatever you think of this lawsuit, you should definitely go over to his site to read all about his feature film "Joe Killionaire" and see the many pics of him with celebs ranging from Sting to Moon Unit Zappa. [15] Sure, the use of ALL CAPS may have been excessive. Then again, this was back in the bubble days. Morton managed to raise $6 million from investors, according to a lawsuit the SEC filed today accusing him of securities fraud. I tried to get in touch with Morton, whose Web site describes him as a "natural psychic, trained Remote Viewer, intuitive consultant, investigative reporter, and accomplished award winning director, screenwriter and film and TV producer." There was no reply to the email I sent to his company, and the phone number listed on his Web site was busy. Morton further claimed that he would use the pooled funds to trade in foreign currencies and distribute pro rata the trading profits among the investors. Morton lied to investors about his past successes, and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds, and that the profits in the accounts were audited and certified. [16]
In all, Morton raised more than $6 million from over 100 investors in 2006 and 2007. Morton invested about half the funds with foreign currency trading firms and diverted some of the investor funds, including at least $240,000 into his and his wife's non-profit religious organization, Prophecy Research Institute. Morton, his wife Melissa Morton, and three corporate entities that they own under the umbrella of the Delphi Associates Investment Group were the subject of the SEC charges. [5] According to the complaint, Morton, who did not seek accreditation status from the Delphi Investment Group investors, placed investor funds in the bank accounts of one of the Entities, and that Morton and/or Melissa Morton, commingled the investors' funds among the Entities' accounts. According to the complaint, while Morton promised investors that all of their funds would be used to trade foreign currencies, in fact, he invested only about half of the funds with foreign currency trading firms. [10]
The U.S. Securities and Exchange Commission has sued a self-proclaimed 'psychic' for fraud, alleging that he milked suckers for $6 million in a phony investment scam. Sean David Morton, who calls himself 'America's Prophet' siphoned funds from over 100 investors with bogus claims that he had predicted every market high and low for 14 years, according to the SEC's complaint. [17] The Securities and Exchange Commission alleges Sean David Morton scammed more than $6 million from gullible investors who believed he was a visionary. Morton, 51, insists he's the real victim because he knew the market was going to crash - but his trader didn't act. "I lost more money in this so-called 'investment scheme' than anyone," said the so-called "natural psychic" who runs the Delphi Investment Group out of his California office. [18]
The S.E.C. today filed civil fraud allegations against a psychic, Sean David Morton, who claimed he had forecast all tops and bottoms in the foreign exchange market for 14 years.'' With that power, you might wonder why he needed to raise money from others. The S.E.C. says he raised $6 million from more than 100 investors. '''Morton'''s self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money,''' said George S. Canellos, director of the S.E.C.''' [19]
Sean David Morton calls himself "America's Prophet." He promoted his supposed psychic powers as a way of predicting stock trends. The Securities and Exchange Commission filed suit yesterday against Morton and three of his companies. One SEC official says those psychic powers are nothing more than a scam. [20] The Securities and Exchange Commission (SEC) is now after Morton for allegedly scamming $6m (€4.4m). His clients believed their money was being invested with foreign currency traders, guided by Morton's psychic revelations. [21]
God is Love." Morton, 51, a resident of Hermosa Beach, Calif., told investors that he would pool their money for trading in foreign currencies, but invested only about half the money that way, the SEC alleged. It said at least $240,000 of the investors' money was diverted to Morton's religious organization, Prophecy Research Institute. "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money," George Canellos, director of the SEC's regional office in New York, said in a statement. [8] "The trader I worked with did not take my advice, saying it would be fiscally irresponsible, but I was right." In court papers filed Thursday in Manhattan Federal Court, regulators said Morton is an old-fashioned con man who "falsely touted his historical success in psychically predicting the various rises and falls of the market." He threw some of his investors' money to ordinary foreign currency trading firms, the suit said. He allegedly funneled the rest to his own efforts, including a nonprofit called the Prophecy Research Institute, run by his wife, who's also named in the lawsuit. Even though Morton claims he can see the future, he didn't know the SEC had filed a suit against him until the Daily News called. "This week I'm filing for personal bankruptcy," said the self-proclaimed seer, whose Web site is full of pictures of him mugging with the likes of Sting and Moon Unit Zappa. [18] The SEC is seeking an injunction against Morton, and unspecified fines and restitution. Morton couldn't be located Thursday for comment, and there were no phone numbers publicly listed in the area where he is said to reside. The SEC said it wasn't aware of an attorney representing him. Starting in 2006, Morton drummed up investors by telling them he would use his psychic powers to guide his investing team, according to the SEC. "I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years," he proclaimed in a July 2006 newsletter. Morton's Web site, monthly newsletter, appearances on a national radio show and at public events were used to promote his psychic talents, the SEC said. Photos of him posing with celebrities including Mel Brooks, Robin Williams and the late Farah Fawcett are featured in his newsletter, along with his schedule of tours around the country and the motto: "All is One. [8] Attempts to contact Morton by the WSJ weren't successful. The SEC charges that Morton invested 'only about half of the funds' into the foreign-currency trades where he had promised to put the money. The SEC said, the Morton and his wife used at least $240,000 of the funds for their own nonprofit religious organization, PRI. On his Web site, Morton says he "uses his talents and abilities to predict future occurrences and trends such as earth changes, political events and stock market fluctuations." He also claims to have given exact dates for such events as the San Francisco earthquake in 1989, and to have foreseen former President Bill Clinton's impeachment scandal. [11]
Morton failed to anticipate the depth and length of the dot-com crash ten years ago. He predicted a Dow Jones floor of 8,000 (it never went below 10,000) in October 2001, and the Nasdaq rocketing to over 7,000 in 2003 (it stayed at around 2,000). In more recent times, the SEC claims Morton used his web site and radio shows to appropriate more than $6 million from true believers, promising big returns on the foreign currency market. Half the money was pumped into his own shell companies, one of which is called Magic Eight Ball Inc, according to the complaint. [17]
Over 100 people sent Morton $6 million since 2006 to invest in foreign currency trading, according to the SEC. The SEC charges that Morton and his wife allegedly "diverted at least $240,000 of investor funds" to their Prophecy Research Institute. [14] Morton raised over $6 million from more than 100 investors. The SEC claims he and his wife diverted some of the funds to their own nonprofit religious charity. He allegedly invested about half the funds with foreign-currency trading firms and falsely represented that the profits in the accounts were audited and certified. [3]
Morton invested only about half of the funds with foreign currency trading firms. Unbeknownst to investors, instead of investing all of the funds into foreign currency trading firms, Morton or his wife diverted some of the investor funds. For instance, the Mortons diverted at least $240,000 of investor funds to their own nonprofit religious organization, Prophecy Research Institute (PRI). [6]
According to the SEC, Morton lied to investors about his past successes, and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds, and that the profits in the accounts were audited and certified. [9] According to the SEC's complaint, Morton fraudulently raised more than $6 million from more than 100 investors for the Delphi Investment Group. [6] In a statement on Thursday, the SEC said Morton fraudulently raised over USD 6 million from more than 100 investors for the Delphi Investment Group. [7]
On October 7,2006, Morton wrote to a potential investor, Investor G, in two separate emails: "The more you get me the MORE 1 can make for you" and " ive ME enough money to help YOU! Give me enough so that the average profits will make a DIFFERENCE in your life." (emphasis in original.) In a subsequent email, after Investor G had already invested with the Delphi Investment Group, Investor G told Morton that he would like to invest in other types of investments such as the stock market. [22]
Sean uses his talents and abilities to predict future occurrences and trends such as earth changes, political events and stock market fluctuations. He has an astounding '''hit rate''', or percentage of successes. In one-on-one correspondence with potential investors, Morton was even more aggressive in his solicitation. [22]
The case was dismissed. According to Morton's website, delphiassociates.org, he is a natural psychic, able to predict the movements of the Earth and political events as well as stock market fluctuations with an accuracy that gives him more hits than "the Russian mafia!". His spiritual journey began in 1985 when he left Los Angeles for England and Ireland and became involved in something called "the Green Stone saga (one of the stones in the hilt of Excalibur)". Next he travelled to India and eventually to an audience with the Dalai Lama. "His holiness instructed Sean to trek to the Black Hat monastery of T'ang Boyche in Nepal, near the foot of Mt Everest. [21]
A man claiming to be a stock market psychic is charged with bilking $6 million from more than 100 investors. [20]
The lawsuit was filed in the U.S. District Court for the Southern District of New York. The SEC noted that the $6 million in investments that Morton received from more than 100 allegedly were placed in bank accounts for various entities, including Vajra Productions LLC, 27 Investments LLC and Magic Eight Ball Inc. The SEC alleges those companies, and others that received money, were simply shell companies controlled by Morton and his wife. [12] The index ended that year at 8,341. In a statement, George Canellos, the director of the SEC's New York regional office, said: "Morton's selfproclaimed psychic powers were nothing more than a scam to attract investors and steal their money." Morton has made no comment, at least on this astral plane. [21]
Time would start anew for Morton. I let that go because some interviewers don't want to confront their guests, but alarm bells went off when Sean David Morton started bragging about the investment success he was having with his psychic investing. There are cases of psychics and remote viewers making money this way -Russel Targ comes to mind- but you have to be able to do it, not just talk about it. This may be low hanging fruit for the SEC to pick, but it's good to see they're doing something about Morton. [11] "I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years," Sean David Morton allegedly wrote in a newsletter back in 2006. That was a bold claim. [16] "I have called all the highs and lows of the market, giving exact dates for rises and crashes over the last 14 years," Morton said in a newsletter to potential investors. Sadly for his investors, last week America's top financial watchdog said his claims were (crystal) balls. [21]
Delphi's Web site features amateur pictures of Morton with celebrities including Adam West, Sting, and Farah Fawcett. He gave exacts dates, magnitudes and epicenters for the 1989 San Francisco earthquake, then went on to predict natural catastrophes such as the '92 Landers and '94 Northridge earthquakes, and also the '95 quake in Kobe, Japan, to name only a few. His political and economic predictions shocked the nation. Years in advance, he foresaw Clinton's impeachment, the controversy over the 2000 vote and the election of George W. Bush. He also predicted exact dates for the post-90's decline of the DOW and NASDAQ, and has given the exact levels -- and timing-of their subsequent rise and fall. [14]
The SEC filed the lawsuit against Morton, aged 51, who resides in Hermosa Beach, California, and three companies he co-owns with his wife Melissa Morton under the name Delphi Associates Investment Group. [12] The SEC suit also names the Prophecy Research Institute and Morton's wife, Melissa Morton, as so-called relief defendants — not accused of any wrongdoing but alleged to have received illegal profits from the scheme. The agency is seeking unspecified restitution from them. [8] Melissa Morton and PRI are named as relief defendants in the complaint. The SEC complaint seeks to permanently restrain and enjoin the Mortons from future violations of federal securities laws and seeks a final judgment ordering them to disgorge their ill-gotten gains plus prejudgment interest. The complaint also seeks a final judgment ordering them to provide a verified accounting. [9] The SEC's complaint charges each of the defendants with violations of Sections 5(a), 5(c) and 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. [6]
The SEC charges that Morton mislead investors and operated outside securities regulations. It seeks a restraining order and the return of his ill-gotten gains. [17]
According to the SEC, Morton fraudulently solicited individuals over nationally syndicated radio broadcasts, public appearances and monthly newsletters to put money into Delphi Associates. [12] Tagged with America's Prophet, fraud, Sean David Morton, sec. Edit this entry. [22] Everyone is, on some level, looking for someone whose ability to make money seems magical. In the whole scheme of things, it's not that weird that Sean David Morton raised more than $6 million by claiming he literally had extraordinary abilities. [13]
At the monastery, Sean was accepted as a novitiate on the basis of a past life connection that was identified by the monastery's High Lama Rinpoche Lopsang Thundun." He then went on to become a radio star, movie producer and investigative reporter -- cracking world exclusives about Area 51 and the Chupacabra, a legendary animal seen as often as a yeti. He's been travelling around the country teaching his "one-day survival tools of tomorrow" course. Morton is due to put in an appearance in New York later this month at the New Life Expo, the same event where he picked up some of his customers in 2006. Here's a prediction: Morton won't be there this year. [21]
SEAN MORTON likes to call himself "America's Prophet". A psychic whose spiritual quest has taken him from Los Angeles to Ireland and the foothills of Mount Everest, he claimed the power to predict the tide of financial fortunes. [21] The Web site's a rollicking read, especially the part about Morton's own personal quest. In 1985, tired of the fast paced life in Los Angeles, Sean went on a worldwide spiritual quest, which led him to England and Ireland, where he became involved with the Green Stone saga (one of the stones in the hilt of Excalibur). His quest then took him to India, where he studied at the Tibetan Library of Works and Archives in Dharmsala. After a life-changing personal audience with the Dalai Lama, His Holiness instructed Sean to trek to the Black Hat monastery of T'ang Boyche in Nepal, near the foot of Mt. [11]
The SEC seeks a restraining order and disgorgement of Morton's "ill gotten gains," plus penalties and related relief. The allegations of the SEC complaint remain to be proven in court, but if they are accurate, it won't take a psychic to predict Morton's future. [3] Corporate entities co-owned by Morton who are charged as defendants in the SEC's enforcement action are Vajra Productions, LLC, 27 Investments, LLC, and Magic Eight Ball Distributing, Inc. [6] The Mortons are defendants in two pending private civil actions, the SEC said. [23]
Melissa Morton and PRI are named as relief defendants (Relief Defendants) in the complaint. [10] The complaint further charges that the relief defendants were unjustly enriched by receiving investor funds. [6]
This just to show just stupid Americans are. They trust a psychic to make them money. If the guy was for real, why wouldn't he have used his skills to help himself, instead of stealing money from clueless goofs like his investors. [14] I used to listen to Art Bell's show until I wised up, and no guest was glib as much as Morton. Like him or not, he has a gift for spinning a story. Every time he came on, Art Bell would start a new clock on him. [11]
According to a 2009 lawsuit, Morton claimed to be the target of "two (or more) dishonest and incompetent SEC employees, who apparently need to justify a trip to California in order to visit Disneyland and eat In And Out Burgers at the taxpayers' expense". [21] Kmart's ex-CEO, Charles Conaway, has been ordered by the SEC to pay over $10 million for misleading investors about the company's financial position in the months leading up to its 2002 bankruptcy. Today's investors are understandably anxious, with continued market volatility and the waning performance of their retirement and college savings accounts. [9]
SOURCES
1. Courthouse News Service
2. S.E.C. Charges Psychic With Securities Fraud - DealBook Blog - NYTimes.com
3. Stock Market 'Psychic' Sean David Morton od Delphi Charged by SEC With Duping Investors - DailyFinance
4. 'Psychic' US share tipster Sean David Morton charged with fraud - Telegraph
5. Self-Proclaimed 'Psychic' Charged with Investor Fraud - The World Newser
6. SEC Charges Nationally Known Psychic in Multi-Million Dollar Securities Fraud
7. fullstory
8. The Associated Press: SEC charges market psychic alleging $6M scam
9. SEC Charges Psychic in Multimillion-Dollar Fraud
10. ENFORCEMENT PROCEEDINGS - SEC Charges Nationally Known Psychic in Multi-Million Dollar Offering Fraud | TradingMarkets.com
11. If You've Ever Met Sean, You Are Zero Degrees Away From a Man Charged by the SEC - Law Blog - WSJ
12. SEC Charges Sean David Morton, "America's Prophet" With Investor Fraud - Update
13. 'Psychic' Investment Adviser Charged With Fraud -- Daily Intel
14. SEC Charges 'America's Prophet' With Fraud; Investors Sent $6 Million To Psychic | TPMMuckraker
15. SEC Sues Psychic For Not Actually Being Able To See Future - The Consumerist
16. SEC Sues Psychic For Securities Fraud - Planet Money Blog : NPR
17. SEC sues dot-com crash 'psychic' | THINQ.co.uk
18. Psychic Sean David Morton scammed $6M convincing people he could predict stocks' fortune, SEC claims
19. Psychic Powers - Floyd Norris Blog - NYTimes.com
20. Stock market psychic busted by SEC - 3/05/10 - Los Angeles-Southern California-LA Breaking News, Weather, Traffic, Sports - abc7.com
21. US authorities chase psychic Sean Morton in $6m'scam' - Times Online
22. FT Alphaville » So, did 'America's prophet' see the SEC coming?
23. SEC accuses America's Prophet of investor fraud | Reuters
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