Pay Up: Morton Owes in SEC Fraud Case

FINAL JUDGEMENT ISSUED IN MORTON FRAUD CASE

Two year case comes to a close as Morton is ordered to pay millions in 'psychic scheme'

Sean David Morton (pictured above) was accused by the SEC of defrauding

millions from investors

How many psychic readings would $11,535,382.18 buy?  Apparently not enough for self proclaimed psychic Sean David Morton to see that would be the amount he is now liable for paying from his involvement in what the SEC called a 'psychic scheme' that Morton used to swindle investors out of millions of dollars.

Judge Katherine B. Forrest today issued a final order of judgement against Morton and other defendants, including his wife Melissa Ann Morton, commanding "disgorgement of all investor funds unlawfully diverted" by The Mortons for their personal use.  You can read the order against Sean David Morton here.

In addition to Sean David Morton being ordered to pay nearly $12mil, co-defendant Melissa Ann Morton was ordered to pay $574,128.23.  You can read the order against Melissa Ann Morton here.

The lawsuit filed by the SEC accused The Mortons of falsifying investor data, illegally diverting funds, and centered around Sean David Morton's false claims of being able to use psychic powers to predict the stock market.  The SEC contends that Morton's predictions were inaccurate and that Morton also lied about investment accounts being audited and certified.  In all, $6mil of investor money was lost with only half of that sum actually being invested.

Today's final judgement order brings an end to nearly two years of litigation that saw The Morton's attempting to bog down the courts with a plethora of inane legal briefings rambling about The Morton's being immune from U.S. jurisdiction even though they reside in the state of California.  The Morton's appeared desperate during the filings going so far as claiming to be ambassadors from something referred to as the Republic of New Lemuria.  The Mortons even provided the court copies of what they alleged were official New Lemuria credentials and claimed they had diplomatic immunity.

Court Issues Judgement Against Mortons

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...