Labor & Employment Law

Psychic Sean David Morton charged with Securities Fraud

By Dobin & Jenks

The U.S. Securities and Exchange Commission charges owner of Delphi Investment Group with Securities fraud. The interesting twist is that the owner is Sean David Morton, a California based psychic. Allegedly, Morton billed himself as "America's Prophet" and scammed investors out of more than $6 million. The SEC calls Morton a con artist who "falsely touted historically predicting rises and falls in the market."

The SEC complaint provides great detail of how Delphi Investment Group masterminded their securities fraud scheme.

1) Morton used common practices such as a monthly newsletter, Delphi Associates Newsletter, a company website (www.delphiassociates.org), and a nationally syndicated radio show to attract and lure investors. In addition, he held public events to promote his psychic abilities.

2) Morton, who did not seek accreditation status from the Delphi Investment Group investors, placed investor funds in the bank accounts of the Entities, which were shell companies controlled by Morton and his wife and commingled the investors' funds among the Entities' accounts.

3) Morton promised investors that all funds would be used to trade foreign currencies, however, only invested about half of the funds with foreign currency. Unbeknownst to the investors, Morton and his wife diverted some of the investor funds, into their own nonprofit organization, PRJ.

For more information on the Psychic Sean David Morton Securities Fraud charges click on the following links:

SEC charges Sean David Morton with fraud - WSJ
'Psychic? US share tipster Sean David Morton charged with fraud - UK Telegraph
Self-Proclaimed 'Psychic' Charged with Investor Fraud - ABC News Blog

Full post as published by The Law Planet Blog on March 07, 2010 (boomark / email).