Federal Judge Rules Against Mortons in Fraud Lawsuit
The Mortons fail to appear for a mandatory court appearance and are ordered to pay nearly $12-million in fines and fees for defrauding investors
Sean David Morton (pictured above) and his wife, Melissa Ann Morton, were accused
by the SEC of defrauding investors out of millions of dollars
Sean David Morton's supposed psychic ability failed when he was unable to predict the outcome of an SEC lawsuit filed against him and others for what the SEC called a "psychic scheme" designed to defraud investors out of millions of dollars.
Trouble began for The Mortons when the SEC launched an investigation into an investment group that Morton promised would net large returns based on his psychic predictions of the stock market. Morton attempted to stop the investigation through litigation and failed, claiming he was being targeted by the government so SEC officials could visit California and go to Disneyland.
The lawsuit, filed by the SEC in March 2010, was slowed down due to a number of baffling, rambling and disjointed papers filed with the court by The Mortons, as well as The Mortons trying to evade being served papers and not cooperating during the discovery process. Judge Katherine B. Forrest issued an order for The Mortons to appear in court on February 11, 2013 for a summary judgement hearing.
The legal antics didn't end there and continued with The Mortons filing over ten briefs with the courts including a motion for a change of venue and a letter from Sean David Morton alleging that he is "a duly appointed Ambassador" for the Republic of New Lemuria.
The Mortons alleged in an unusual letter to the court that they were not under the jurisdiction of the federal government and claimed to be ambassadors from the "sovereign California republic", yet asked for the date of appearance to be changed because they were unable to travel due to being "financially destitute". The letter can be read here.
The Mortons later filed with the court blaming their failure to appear on weather conditions on the east coast and that the court had not provided them with ways "to defray the costs of airfare, hotel and travel costs to appear in a jurisdiction that is Foreign/Non-Domestic to the State of New York, New York State, the federal Southern District of New York and to the domicile of the de jure State Nationals of the California Republic." The document appears to be faxed from what The Mortons refer to as the Republic of New Lemuria.
Since The Mortons failed to appear as ordered by the court, a default judgement was entered against them ordering them to pay nearly $12,000,000.
Sean David Morton was scheduled to give a presentation tonight entitled "How to Secede from the U.S. Incorporated (Everything you always wanted to know about getting the Gov't off your back, but were afraid to ask)". It is unknown if he would be charging to make anyone an ambassador to the Republic of New Lemuria...