Home > SEC Charges Psychic with Securities Fraud

SEC Charges Psychic with Securities Fraud

March 9, 2010

On March 4, 2010, the Securities and Exchange Commission filed a civil fraud lawsuit against nationally recognized psychic Sean David Morton and three companies he owns under the name Delphi Associates Investment Group ("Delphi"). According to the SEC's complaint, Morton, who calls himself "America's Prophet," solicited more than 100 individuals to invest in his companies claiming that he would use his psychic powers to trade in foreign currencies.

According to the SEC, Morton solicited investors through a newsletter with 20,000 subscribers run through the Delphi website, and frequent appearances on radio shows like "Coast to Coast," a late-night syndicated program focused on the paranormal. "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 one of his newsletters. The SEC alleged, however, that Morton lied to investors about his past successes, and ended up using investor funds for personal use, including diverting at least $240,000 to his nonprofit religious organization, Prophecy Research Institute. In total, the SEC alleged that Morton raised more than $6 million.

The SEC is seeking an injunction against Morton, and unspecified fines and disgorgement. A copy of the Commission's complaint is available on the sec website at:

Related Information:

http://www.sec.gov/litigation/complaints/2010/comp21433.pdf (PDF)