S.E.C. Charges Psychic With Securities Fraud

It may read as if it’s ripped from the pages of The Onion, but yes, it’s real.

The Securities and Exchange Commission on Thursday sued a well-known fortune teller who called himself “America’s Prophet,” charging him with securities fraud for swindling investors out of $6 million with the promise that he could accurately predict market moves. (Read the lawsuit after the jump.)

The fortune teller, Sean David Morton, 51, is accused of inducing more than 100 investors into pouring money into the Delphi Investment Group through his newsletter, Web site and guest spots on a nationally syndicated radio show.

Among his pitches: “I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years.”

S.E.C. officials on Thursday were less impressed by his claims.

“Morton’s self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money,” George S. Canellos, the director of the S.E.C.’s New York regional office, said in a statement.

Mr. Morton’s wife, Melissa Morton, and their nonprofit religious organization, Prophecy Research Institute, were listed as relief defendants, meaning that while they are not accused of a crime, the S.E.C. is seeking a disgorgement of their share of the ill-gotten gains.

Neither the couple, nor a representative for their organization could be reached for comment.

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This entry was posted on Friday, March 5th, 2010 at 3:49 pm and is filed under Securities Fraud. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.