"Self-Proclaimed 'Psychic' Charged with Investor FraudMarch 04, 2010 6:03 PM
ABC's Matthew Jaffe reports from Washington:
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.
"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. 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."
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.
The SEC complaint can be found HERE.