SEC Claims “America’s Prophet” Caused Losses

March 8, 2010 (PLANSPONSOR.com) – You’d think someone who calls himself “America’s Prophet” could have seen this coming.

The Securities and Exchange Commission (SEC) has 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 last week 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.

The Complaint 

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. According to the SEC, 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, in a press release.