Sean David Morton Sentenced to Federal Prison

Sean David Morton sentenced to federal prison.

© Copyright 2017 ufowatchdog.com

(Special thanks to Greg Bishop of Radio Mysterioso for his coverage of the sentencing hearing and providing ufowatchdog.com with updates and details)

Today at 11AM (PST), a federal judge sentenced bogus psychic Sean David Morton to 72 months in federal prison for his part in a tax scheme in which he was found guilty of falsifying tax documents, filing false tax returns while victimizing people for tens of thousands of dollars in a straw-man redemption scheme, and defrauding the IRS out of nearly $500,000.00.

Morton, who gained notoriety through the late night radio show Coast To Coast AM and through new age/UFO seminars for his wild predictions and UFO tales, was convicted on over 50 felony counts in federal court in early April.  Morton boasted he was "simply the best" when it came to making accurate psychic predictions, yet he never foresaw the coming of his own demise.

Federal agents originally arrested Morton and his wife in February 2016 as they disembarked from a conspiracy convention that took place aboard a cruise ship - ironically, one of the charges against The Mortons was conspiracy.  The Mortons were released after posting bond and later went to trial in federal court.

Prior to their arrest, the IRS contacted The Mortons on more than one occasion advising them the paperwork and forms they were filing were illegal and to cease filing them.  When The Mortons continued to file false bonds and paperwork in spite of repeated warnings from the IRS, a federal grand jury convened and indicted The Mortons on numerous felony counts.  While prosecutors filed 56 charges against each of The Mortons, they had the option of filing in excess of 100 charges against each Sean David Morton and Melissa Ann Morton.

Federal agents later served a search warrant on Morton's apartment and seized computers, mobile phones, and documents among other items.

During the trial, Morton represented himself and filed a myriad of bizarre filings in an attempt to disrupt proceedings, including proclaiming himself judge of his own court.

Self proclaimed "legal and
constitutional expert"
Sean David Morton.

"The court is familiar with the multitude of nonsensical pleadings [Morton] filed and stated in Court throughout the course of this criminal case, which has not abated since his conviction. [Morton]'s pattern of conduct of filing unintelligible pleadings began weeks after the initial indictment of defendants...The day [Morton] was released from his arrest, he filed unintelligible pleadings..." -- Prosecutors in a sentencing recommendation for Sean David Moron

Morton was advised several times by the presiding judge concerning his outbursts in court and his repeatedly calling IRS agents "jack booted thugs".  A jury took two hours to deliberate and return guilty verdicts on all counts against Morton and his wife.

After his conviction, prosecutors from the Department of Justice were seeking an 87 month prison term calling Morton "a serial fraudster."  Morton was scheduled to be sentenced in June but failed to appear in court as ordered.  A warrant for Morton's arrest was immediately issued.

"This is clearly a case where [Morton] has willfully undertaken a systematic effort to impede this prosecution and the resulting sentencing." -- Prosecutors sentencing recommendation on Morton.

Federal agents began surveillance on Morton's apartment, later spotting Morton's car parked at a nearby Domino's Pizza.  A short time later, federal agents observed Morton walking out of the business wearing a hat, sunglasses, a hooded jacket with the hood up, carrying a black computer bag.  Morton got back into his car and drove away.  It is unknown what kind, if any pizza Morton may have ordered.

Federal agents continued following Morton where he next stopped at the Fairmount Private School in Anaheim, California.  Agents reported being able to see Morton in the building as Morton repeatedly looked through a window, but did not elaborate on why Morton was there.  It appears the agents were waiting for what they felt was the best tactically safe place and time to arrest Morton, and with good reason; Morton's wife had told federal agents that Morton had a firearm.

On June 21st, agents from the U.S. Marshall's Service observed Morton's car parked in the driveway of his apartment and moved in to take Morton into custody.  Agents entered the apartment only to find Morton's wife inside and she denied knowing his whereabouts.

Melissa Morton had been allowed to remain out of custody on a release agreement which included her allowing federal authorities to monitor her cellphone and computer activity along with her agreeing to have no contact with Morton.  She also agreed to pay $10,000.00 if she violated any of the terms of her release.

Sean David Morton on a live YouTube interview while
he was still a wanted fugitive.

While on the run from authorities, Morton appeared on a live streaming YouTube program.  During the broadcast, Morton called the prosecutors and judge in his case "the biggest gang of criminals you're ever gonna' see." He also stated no warrant had been issued for his arrest and he was working on addressing legal issues relating to his case.

Morton made the baffling and unsubstantiated claim that the federal government profited over $417,000,000.00 by prosecuting him in a "kangaroo court."  Federal prosecutors noted this YouTube appearance in Morton's updated sentencing recommendation.

All of Morton's disjointed and babbling appeals were denied well before the YouTube broadcast and he had brought an end to any legal options he might have had because he had not been sentenced.  In order for an appeal to be considered, a case has to be completed including a defendant having been sentenced.  Morton claims to be a "legal and constitutional expert", but he does not have a law degree nor is he a licensed attorney.

Morton said during this same program that he would be returning to his Internet radio show soon, and undoubtedly Morton intended to use his status as a federal fugitive in an attempt to bolster his show.  Morton appeared on another streaming Internet program where he mocked the government by jokingly saying "oh no, they found me" while he laughed.

Hotel where The Mortons were taken into custody.

The following day, August 21st, federal agents followed Morton's wife to a hotel in Desert Hot Springs, California where she was meeting with Morton to view the eclipse.  Morton was taken into custody by the hotel's pool while Melissa Morton was nowhere to be found.  Federal agents intercepted Melissa Morton as she attempted to elude them by driving out of the hotel parking lot.  The arrest brought Morton's 61 day run as a fugitive to an end and both of The Mortons were lodged in jail without bail.

"In its original sentencing position, the Government presented ample evidence of defendant’s obstreperous conduct leading up to and after the trial in this case..." -- Prosecutors in a revised sentencing recommendation on Morton.

Melissa Ann Morton

For her part in the tax scheme, Melissa Morton was sentenced today to 24 months in federal prison.  Melissa Morton helped to move and conceal funds she and Sean David Morton fraudulently received from the government after they filed false tax returns multiple times in order to circumvent the IRS computer system.  She also helped to prepare and notarize false tax documents and filed false tax returns.

"[Sean David Morton] is a serial fraudster with a long history of perpetrating financial crimes and wasting precious time and resources of the government and the courts."  -- U.S. Attorney General on Sean David Morton.

The Mortons moved quickly to hide nearly $500,000 they received from the IRS through a fraudulent tax return.  Melissa Morton withdrew $70,000 in cash, opened other bank accounts to funnel funds into, and leased a BMW automobile.  Melissa Morton later lied to investigators about her bank accounts.  The Mortons filed multiple false tax returns attempting to obtain millions in fraudulent returns even though Sean David Morton has no verifiable income.

The Mortons were living it up while filing for
bankruptcy and claiming they were nearly homeless
after they defrauded investors out of $6,000,000
and later were charging people thousands for a
phony debt redemption scheme.

The Mortons charged people thousands of dollars claiming they could eliminate anyone's personal debt through a bonding process.  The Mortons received a letter from the California Tax Franchise Board advising the bonding process they were selling was not legitimate along with warnings from the IRS.

In spite of these warnings and knowing the process did not work, The Mortons continued selling the bonds to people including a woman who paid $2500.00 for The Mortons to erase her massive student loan debt, and an elderly couple who paid The Mortons $10,000 to erase their overwhelming debt.  In both cases, the bond process did not work and The Mortons refused to refund their money.

" I have never stolen from anyone in my life, and I cannot even fathom how someone could risk incurring such karma for base, short term monetary gain."  -- Sean David Morton in 2010 about his being sued by the SEC for defrauding investors.

The Mortons enjoyed season tickets
to USC Trojans football games
while claiming they were broke
and almost homeless in 2015.

In 2010, Morton and his wife were sued by the SEC in a case where The Mortons defrauded $6,000,000 from investors in what SEC officials called a "psychic scheme" where Morton claimed he could use his alleged psychic powers to predict the stock market.  The SEC investigation found very little of the money had actually been invested and The Mortons had diverted investor funds into personal accounts and shell companies.  The SEC also showed that none of Morton's stock market predictions were true nor accurate and Morton's claim of a prestigious financial firm accrediting the investment fund was also false.

The Mortons were ordered to repay nearly $12,000,000 in fines and restitution and were restrained from engaging in trading again.  The Mortons were sued by some of the investors including an elderly woman who lost her life savings in the scheme.

In 2015, The Mortons filed for bankruptcy but their application was denied after bankruptcy officers discovered The Mortons had lied under oath about their financial interests including claiming they paid for everything in cash and did not have bank accounts.  In spite of The Mortons claiming to be nearly destitute and homeless, they still managed to have season USC Trojans football tickets.  The Mortons were also charging people thousands of dollars in their debt redemption scheme and Morton was charging hundreds of dollars for psychic readings.

Click above to read the investigation Sean David Morton tried to suppress.

All he had to do was prove a single false statement had been made. When it came time for Morton to put up, his proof never materialized. Morton only needed to provide the court with a solitary piece of evidence and he couldn't do it."  --ufowatchdog.com editor on Morton's inability to prove any of his claims during a lawsuit Morton filed against ufowatchdog.com.

Morton was exposed in 2001 when ufowatchdog.com published its investigation, The Shameless Psychic and his Prophecy of Lies which exposed Morton's educational background, psychic and other claims as false.   In 2003, Morton attempted to sue ufowatchdog.com claiming the investigation was untrue and libelous.  After failing to prove a single claim in court, Morton lost and was ordered to pay $16,000 in legal fees to ufowatchdog.com.  Morton was directly invited to refute a single claim in the ufowatchdog.com investigation and he failed to do so.

Sean David Morton will be released from federal prion in 2023 and Melissa Ann Morton will be released in 2019.  During the sentencing hearing, Morton  spoke for roughly forty minutes telling the judge he was a sovereign citizen.  Morton told the judge it was a mistake that he represented himself in the trial and asked to be assigned legal counsel.  The judge denied Morton's request for representation and told Morton he explained the legal options available and the dangers of representing himself prior to trial.

The Mortons were both ordered to pay restitution, were ordered to not engage in any financial or debt relief, and will serve five years parole.

#seandavidmorton #psychics #sdm 

Bunk Psychic Absconds from Criminal Sentencing

Bogus psychic and convicted felon Sean David Morton was scheduled to be sentenced today for his part in a tax fraud scheme.  Prosecutors in the case recommended an 87 month term of imprisonment for Morton.

Morton was to appear in a Los Angeles, California federal court today at 11AM (PST) and failed to show up for sentencing.  A source within the United States Attorney General's office confirmed a federal warrant has been issued for Morton's arrest and his current whereabouts are unknown.

Morton and his wife, Melissa Ann Morton, were accused of filing false tax returns and charged victims thousands of dollars claiming their debt could be erased through a bonding process , in spite of knowing the process did not work.  When victims sought refunds upon discovering the process did not work, Morton refused to refund their money plunging them further into debt.

Morton also defrauded the government out of nearly half-a-million dollars by filing a false tax return and forging other tax documents by submitting multiple copies to various IRS offices in an effort to circumvent the IRS's system.  In all, Morton attempted to claim more than $12,000,000 in refunds even though he does not have any verifiable income.

"Defendant reported no income on his financial statement, but monthly expenses of $3,306, with no genuine explanation as to how he meets these expenses."

--United States Parole & Probation report on Morton.

During a 2015 federal bankruptcy hearing, The Mortons lied about their business interests and attempted to mislead bankruptcy officers about their finances, causing their bankruptcy filing to be denied.  Morton filed a number of bizarre motions and arguments during the bankruptcy case including this one.

Agents from the Internal Revenue Service's criminal division began investigating Morton and his wife after Morton filed multiple fraudulent tax returns and documents, including OID (Original Issue Discount) forms he claimed were issued to him by a bank.   Bank employees testified the OID forms were never issued to Morton and an expert witness confirmed the documents submitted by Morton were fraudulent.

The investigation also focused on Morton and his wife obtaining a nearly half-million dollar tax refund they were not entitled to.  The IRS investigation found The Mortons moved quickly to divert the money to different accounts in an effort to hide it from the IRS, which included withdrawing $70,000 in cash and later lying to investigators about their bank accounts.  Part of the money was used by The Mortons to purchase a BMW automobile.

In January 2016, a federal grand jury indicted The Mortons on 56 felony counts including fraud and conspiracy.  In February 2016 while disembarking from a cruise ship, The Mortons were arrested by federal agents and later released after posting a $10,000 bond.  Federal agents also served a search warrant on an apartment The Mortons were living in and seized documents, computers, and other items.

The Mortons entered not guilty pleas and the case went to trial April 2017 with Sean David Morton representing himself while his wife obtained court appointed counsel.  Morton previously claimed to be a "legal and constitutional expert" though he does not have a law degree and is not licensed to practice law.

Morton filed a number of disjointed, rambling briefs and motions with the court prosecutors said were designed to delay the criminal trial.  Those documents submitted to the court included Morton proclaiming himself judge of his own court, stating the courts had no jurisdiction over him, attempting to withdraw his not guilty plea after he'd been convicted, notifying the IRS he did not fall under their rules, filing a state lawsuit in an attempt to stop federal criminal proceedings against him, and more.  A jury took two hours to return guilty verdicts against Morton and his wife on all counts.

"The Court is familiar with the multitude of nonsensical pleadings [Morton] filed and stated in Court throughout the course of this criminal case, which has not abated since his conviction.  [Morton]’s pattern of conduct of filing unintelligible pleadings began weeks after the initial indictment of defendants...The day [Morton] was released from his arrest, he filed unintelligible pleadings..."

--Dept. of Justice attorneys in a brief filed with the court on Morton's barrage of filings.

Morton's filing of numerous motions in an attempt to stall proceedings is a tactic referred to as paper terrorism, in which a person files copious amounts of paperwork to bury the court in order to delay proceedings or hoping for the court to make an error.

At a New Life Expo conference, Morton referred to himself as a paper terrorist claiming he could shut down a court by filing excessive paperwork and lawsuits.  A federal agent was at the conference and recorded Morton making this claim.

Morton's filing of what prosecutors called "unintelligible" and "nonsensical" motions play a part in his sentencing and add to the amount of time he will spend in federal prison if he is ever taken into custody.  When a defendant attempts to stall or otherwise interfere with court proceedings without a legitimate legal basis, it can be considered obstruction of justice in federal court.  In a recommendation to the court, prosecutors requested Morton be imprisoned for 87 months.

Morton's legal shenanigans came to an end when the Ninth Circuit Court of Appeals notified Morton the court would no longer accept his filings.  Morton asked his sentencing date be changed and the court denied that request.

"Defendant is a serial fraudster with a long history of perpetrating financial crimes and wasting precious time and resources of the government and the courts."  -- U.S. Attorney General counsel on Sean David Morton.

Morton described the case against him as "thought crime" claiming there is a government conspiracy attempting to silence him for self publishing books he says contain information exposing the government.  In spite of this alleged conspiracy to silence him, Morton's books are readily available online and he has freely discussed them on Internet podcasts and videos as well as at conspiracy conferences.

When the Securities and Exchange Commission sued Morton and his wife in 2010 for swindling investors out of more than $6,000,000 in what was called a "psychic scheme", Morton filed an inordinate amount of documents and briefs with the court in an attempt to stop the Securities and Exchange Commission from suing him.  The SEC found The Mortons diverted large sums of investor money into personal and other business accounts including $250,000 Morton put in his Prophecy Research Institute.

Morton publicly claimed his investment account had been certified by a prestigious accounting firm when it had not.   The SEC was successful suing Morton who was ordered to pay back millions.  Morton was also sued by investors including an elderly woman who lost her life savings in the scheme.  It is not known if Morton has paid anything to the SEC or the victims.

Morton was exposed in the ufowatchdog.com investigation The Shameless Psychic and his Porphecy of Lies, in which the majority of Morton's educational and background claims were found to be false.  Morton attempted to sue ufowatchdog.com for $1,000,000 claiming the story was designed to defame him and was untrue.  Morton was only required by law to prove a single false statement had been made.

After failing to show the court any of the information published was untrue, Morton lost the case and was ordered to pay ufowatchdog.com $16,000 in legal fees.  Morton continued disparaging the investigation and failed to respond to a challenge to provide his proof even when directly contacted.

Morton's co-conspirator/wife Melissa Ann Morton (pictured below, left) is scheduled to be sentenced July 24th and she has acquired new legal counsel.

Morton gained notoriety in psychic and conspiracy circles for his fast talking appearances on the popular late night radio program Coast to Coast AM and was heavily promoted by then host Art Bell.

Morton made predictions on the program and claimed to be a UFO insider with government and intelligence contacts.  The majority of Morton's predictions failed to come true and UFO cases endorsed as genuine by Morton were often found to be hoaxes.  Morton advertised himself as the"World's Foremost UFO Researcher".

Morton was later banned from appearing on Coast to Coast AM with current host George Noory after the program was served with a subpoena by the SEC during its investigation into Morton swindling investors out of millions.  Coast to Coast AM and George Noory were not involved in the investment scheme.

Morton's self published biography changed multiple times throughout the years to incorporate areas that were popular at the time.  Morton's original biography was erased from his website in the wake of the ufowatchdog.com investigation being published.  Morton later continued making claims in his biography that have been refuted.

Morton hosted an online streaming radio program and boasted it to be the number one show on the Internet with millions of listeners, though no data could be found to confirm this claim.

Morton wrote and self published a newsletter that later ceased publication amid complaints from subscribers that it was either late or never published.  The newsletter was also a focal point during the SEC investigation due to Morton using it to entice investors.

Touting himself as "simply being the best" psychic in the world, many have wondered why Morton was unable to foresee his future legal troubles.

Former investor or party to a lawusit? Contact ufowatchdog.com!

If you were one of the many investors allegedly defrauded by Sean David Morton and Melissa Ann Morton, please contact ufowatchdog.com.

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

Click here to view SEC press release and court filed complaint

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.

---

Additional Materials

• Morton's Newsletter to Investors
• SEC Complaint
• Litigation Release No. 21433

---

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