• 04 Mar 2010 at 3:30 PM

SEC Charges ‘Psychic Investor’ With Fraud

The SEC today charged Sean David Morton with scamming $6 million from 100 investors in his Delphi Investment Group (the individuals would put money in one of three companies- Vajra Productions, LLC, 27 Investments, LLC, and Magic Eight Ball Distributing, Inc.- all under the Delphi umbrella). Morton, who bills himself as “America’s Prophet” (so punny!), with his wife Melissa, apparently reeled in the cash by convincing potential investors that his psychic abilities would make them “piles of money,” if they acted fast.

According to the Commission’s complaint, Morton used his monthly newsletter, his website, his appearances on a nationally syndicated radio show called Coast to Coast AM, 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. For example, Morton wrote to potential investors in his July 20, 2006 newsletter that: “I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years.” (emphasis in original.) The Commission alleges that this assertion, like others Morton made in soliciting investors, is false.

This is also good:

In one-on-one correspondence with potential investors, Morton was even more aggressive in his solicitation. For example, on October 7,2006, Morton wrote to a potential investor, Investor G, in two separate emails: “The more [money] you get me the MORE 1 can make for you” and “[g]ive ME enough money to help YOU! Give me enough so that the average profits will make a DIFFERENCE in your life.” (emphasis in original.) In a subsequent email, after Investor G had already invested with the Delphi Investment Group, Investor G told Morton that he would like to invest in other types of investments such as the stock market. Morton replied, “for RIGHT NOW you will make the most with [the Delphi Investment Group]. Once the DOLLAR starts to DROP, which will happen soon, we are set to make a FORTUNE!” (emphasis in original.)

I’m sure a lot of you will be quick to label these people, like Investor G, as pretty stupid for falling for such an obvious scam. But we did a little investigative research (went to Mr. Prophet’s website) and have another theory. Nobody was duped by the psychic claims. They just got a load of Morton with people such as, for example, ANTHONY MICHAEL HALL and figured this guy must be legit. You probably would’ve, too.

SEC Charges Nationally Known Psychic in Multi-Million Dollar Offering Fraud [SEC via FTAlphaville]

24 comments (hidden to protect delicate sensibilities)
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Comments (24)

  1. Posted by Margin Call | March 4, 2010 at 3:50 PM

    I wonder if Melissa has any experince with the pump and dump?

  2. Posted by CoveredLong | March 4, 2010 at 3:53 PM

    $6MM with THAT website (emphasis in original).

    …what the hell am I doing wrong?

  3. Posted by Tax Chick | March 4, 2010 at 4:04 PM

    I saw this coming!

  4. Posted by Anonymous | March 4, 2010 at 4:06 PM

    @TC I see what you did there.

  5. Posted by Anonymous User | March 4, 2010 at 4:06 PM

    Sangha Norwegian Forest Cats. Lolz

  6. Posted by Anonymous | March 4, 2010 at 4:06 PM

    I’m going to stalk you and watch to see if you meet the “code” i.e. confuse me with B-grade actors. Then, I’m going to break into your apartment and line your bedroom with plastic wrap. It’ll be all over you stuff – unwrapping every pencil and pen will take hours and be a real hassle to recycle.

    – Jeff “Dexter” Macke

  7. Posted by Anonymous | March 4, 2010 at 4:20 PM

    @5 I liked that too.

  8. Posted by Anonymous | March 4, 2010 at 4:30 PM

    nice dog

  9. Posted by Anonymous | March 4, 2010 at 4:44 PM

    there is only one American Prophet, and nobody puts Obama in the corner!

  10. Posted by Anonymous | March 4, 2010 at 5:04 PM

    Those tits could never get old.

  11. Posted by HeadlessHorseman | March 4, 2010 at 5:05 PM

    And to think that everybody thought the SEC was worthless!

  12. Posted by american bandersnatch | March 4, 2010 at 5:06 PM

    Oh shit!
    – Fairfield Greenwich Fund Due Diligence Group

  13. Posted by Anonymous | March 4, 2010 at 5:12 PM

    nice moobs.

  14. Posted by Anonymous | March 4, 2010 at 5:18 PM

    Nobody is more FIERCE than the SEC in nailing psychics. Nobody. (It’s only the $50B ponzis where they goof up)

  15. Posted by SDM | March 4, 2010 at 5:19 PM

    This is a picture of me giving Melissa the rabbit ears…she didn’t understand what it meant, but now she has 200 boyfriends…what an idiot. Long story short, we used the picture for our Christmas card and the kids just loved it, what a hoot.


  16. Posted by Mark Klein, MD | March 4, 2010 at 5:19 PM

    Finally! Someone who knows something about how to earn a REAL return for their investors, and not some PETULANT CHILD (to borrow a phrase from my protege, Bud0nkey).

    We, the American Pubic, have for too long been OUTRAGED by the fat cats in Wall Street generating no public good and taking all of this federal CARP for themselves, while the rest of us fish-loving folk go hungry.

    As a doctor, I can tell you we have long needed a Physics person in investing, such as this fine gentleman here. Only a true scientist, such as myself or this Morton Physics guy, can understand the complexities of instruments such as Credit Card Default Exchanges. It’s time you Wall Streeters realized that you are the scum of the Earth and went and found real, productive jobs. Perhaps you could work in the Federal CARP farms, bailing out those who REALLY need it (a little joke there).

    The fact that this Greatest American Hero is being forced to suck lemons by the suits in Washington is a travesty of a mockery of a sham.

    May God have mercy on their souls, and Long Live Morton!

    –Mark Klein, MD*

    *Paid for by Mark Klein, MD for president

  17. Posted by Anonymous | March 4, 2010 at 6:06 PM

    Hey looks like the guy from Beetle Juice


  18. Posted by Anonymous | March 4, 2010 at 6:14 PM

    @14 strongly agree

  19. Posted by Anonymous | March 4, 2010 at 6:45 PM

    Jeebus, this guy has a huge face! Look at him in that picture with Mel Brooks. He’s got a face like a side of beef…

  20. Posted by Sad Panda | March 4, 2010 at 7:15 PM

    HB or No HB? please advise…

  21. Posted by Sad Panda | March 4, 2010 at 7:17 PM

    HB or No HB? Please advise

  22. Posted by Anonymous | March 4, 2010 at 8:08 PM

    He’ll be in a photo with me in San Quentin.

    Charles Manson-

  23. Posted by what? | March 4, 2010 at 9:29 PM

    CFA or Psychic Institute of America?

  24. Posted by Andrew | March 7, 2010 at 10:36 AM

    What the hell? He’s a psychic and people took his investment advice? If that is the case, those people deserved to be swindled! That’s for damn sure! Why are they cracking down on the other crooks<a? on Wall Street?