Mar 27, 2010

Calling All Investors of the Delphi Associates Investment Group

CONTACT UFOWATCHDOG.COM
If you were one of the over one-hundred investors who lost part of the over $6,000,000 in what the SEC is calling an investment scheme carried out by Sean David Morton and Melissa Ann Morton (both pictured left), please contact ufowatchdog.com.

Mar 22, 2010

Does Sean David Morton owe the IRS $750,000? If So, Did He See It Coming?


While this information remains unconfirmed at this time, ufowatchdog.com has received a report that the Internal Revenue Service has placed a lien against Sean David Morton in the amount of $750,000.00.

Sources close to an investigation into the accusation made by the SEC that Morton (pictured left) scammed investors out of over $6,000,000 state that the IRS has just filed the lien against Morton and that it is tied into Morton's business front known as the Prophecy Research Institute, which, as long ago reported by ufowatchdog.com, is an apartment space rented by Morton.

ufowatchdog.com also reported that the Prophecy Research Institute was not listed as a non-profit organization according to Publication 78, the IRS's official publication on non-profit entities operating within the United States.

Attempts at the time of this blog post to confirm the information went unanswered.


“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 - July 20, 2006 in his Delphi Associates newsletter.


"...my wife and I are facing personal bankruptcy and incurred the single largest losses of any of the investors involved. We LOST our money right along with everyone else."

--Sean David Morton, March 04, 2010 in a statement posted on the
Coast To Coast AM
radio website.

Mar 18, 2010

Inside Edition Investigates Sean David Morton

Newsmagazine Confronts Alleged Psychic
Con Artist

Inside Edition today confronted Sean David Morton outside of his long rented apartment in Hermosa Beach, California. Click here to read the Inside Edition piece.

Confronted by correspondent Matt Meagher, Sean David Morton was asked, "Can you tell us where the six million dollars that investors gave to you went? Can you talk to us about your psychic powers?

Sean David Morton responded, "I don't know what you're talking about," with Meagher asking Morton, "Are you a bad investor or just a lousy psychic? Or both?"

The SEC's lawsuit against Sean David Morton and his wife, Melissa Morton, is set for a hearing this month. The SEC has accused The Mortons of defrauding investors out of over $6,000,000.00, including a 91 year old woman out of $150,000.00.

For more on Sean David Morton, please see the definitive ufowatchdog.com investigation:

The Shameless Psychic and His Prophecy of Lies

Mar 12, 2010

SEC Fraud Lawsuit Against Sean David Morton Not First, Likely Not Last

Bunk Psychic and Wife Sued by Former Investors

ABOVE: Ill-gotten gains? The SEC alleges Sean David Morton (right) and Melissa Morton (left) defrauded investors out of over $6,000,000.00.

Self proclaimed psychic Sean David Morton and his wife (some might say accomplice) Melissa Morton are alleged to have scammed investors out of over $6,000,000 in a scheme the SEC claims that Sean David Morton told investors and potential investors he could predict the outcome of trading foreign currencies.

Sean David Morton was so bold with his claims that he wrote to potential investors, “I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years,” while alleging the investment had at one point made a 117% profit. Apparently that boast turned out to be just that, and the SEC isn't the only lawsuit The Mortons are or have faced in connection with their alleged $6,000,000 fraud.

In various lawsuits filed by private parties, there have been at least four separate legal actions filed against Sean David Morton, Melissa Morton, and their companies used in the allaeged fraud racket; Vajra Productions, LLC, 27 Investments, LLC, Delphi Associates Investment Group, and Magic Eight Ball Distributing, Inc., including the two following cases from a year ago: Saunders v. Morton et al (Verrmont) Bass v. Morton et al (Washington tate) In the official complaint filed against the The Mortons by the SEC, mention is made of at least two New York residents successfully suing The Mortons.

It is unknown how many other lawsuits have been filed against The Mortons, but surely with over one-hundred investors allegedly being defrauded, there are likely more lawsuits on the way. It's already been said, but how did such a supposedly successful psychic not foresee such an event coming into his life? Perhaps he was too busy seeing dollar signs...

Mar 10, 2010

Sean David Morton Attempted to Stop SEC's Multi-Million Dollar Fraud Investigation


ABOVE: Sean David Morton (left) and Melissa Morton (right) failed to convince
a judge to stop the SEC's investigation of a reported investment scheme in which
the Mortons are accused of defrauding investors out of over $6,000,000.


Sean David Morton and Melissa Ann Morton, his alleged accomplice in a scheme to defraud investors out of more than $6,000,000.00, attempted to stop an investigation being conducted by the Securities and Exchange Commission as far back as March 2009.

The suit filed by The Mortons is filled with what can only be described as a mass of disjointed finger-pointing ranging from blaming legislation passed in the 1980s by the senior George W. Bush to racist judges, In and Out Burger, Disneyland, allegedly corrupt civil servants, and more.

You can read the documents filed in the case here.

When the presiding judge dismissed the Mortons' claim, it was noted, "Although it is somewhat difficult to decipher Plaintiffs' [Mortons'] rambling and confusing Complaint, the Court concludes that the Complaint falls well below the "plausibility" standard established" by law.

Sean David Morton is no stranger to losing lawsuits, and the question everyone has asked is how a supposed psychic was unable to foresee any of these events.

It appears the SEC served an investigative subpoena on Premiere Broadcasting, the company that owns the Coast to Coast AM radio program, seeking recordings of Sean David Morton's radio appearances. Sean David Morton claimed in his failed legal action against the SEC that the service of this subpoena ended his "17-year radio career as as the number one guest on Coast to Coast AM, as Premiere Broadcasting has now banned Morton from the show..."

A hearing is scheduled to take place this month in New York pertaining to the SEC's lawsuit against The Mortons.

ABOVE: Sean David Morton (left) and Melissa Morton (right).

“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 in a July 20, 2006 newsletter

Mar 7, 2010

Sean David Morton Charged with Fraud

How did "psychic" Sean David Morton not see this coming? I know, I know. Cliche, but nonetheless applicable. Don't forget to read the original article exposing Morton as far back as 2001: The Shameless Psychic and His Prophecy of Lies Also, check out the nearly 200 news pieces online reporting on the alleged scam. 

 PHOTO: Sean Morton (left) and Melissa Morton (right) have been accused by the SEC of defrauding 100 investors out of $6,000,000.00. A picture can be worth 6,000,000 words.

SEC Charges Nationally Known Psychic in Multi-Million Dollar Securities Fraud

FOR IMMEDIATE RELEASE 2010-34

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. 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. However, 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.

According to the SEC's complaint, Morton fraudulently raised more than $6 million from more than 100 investors for the Delphi Investment Group. 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).

Melissa Morton and PRI are named as relief defendants in the SEC's complaint. 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.

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. The complaint further charges that the relief defendants were unjustly enriched by receiving investor funds. The complaint seeks a final judgment permanently restraining and enjoining the defendants from future violations of the above provisions of the federal securities laws. The complaint further seeks a final judgment ordering the defendants, jointly and severally, to disgorge their ill-gotten gains plus prejudgment interest, ordering the relief defendants to disgorge their ill-gotten gains plus prejudgment interest, and ordering the defendants to pay financial penalties. The complaint also seeks a final judgment ordering the defendants and relief defendants to provide a verified accounting.

# # #

For more information about this enforcement action, contact:

George S. Canellos Director, SEC's New York Regional Office (212) 336-1020

Sanjay Wadhwa Assistant Director, SEC's New York Regional Office (212) 336-0181

Amelia A. Cottrell Assistant Director, SEC's New York Regional Office (212) 336-1056

Bunk Psychic Released from Prison