Psychic Fails to Predict Securities Fraud Charges

Shouldn't he have seen this coming?

A nationally known self-proclaimed psychic has been charged with securities fraud by the Securities and Exchange Commission (SEC).

The SEC alleges that Sean David Morton -- who calls himself "America's Prophet" -- fraudulently raised $6 million after telling investors he could predict stock market highs and lows.

The SEC also filed charges against three corporate entities that Morton co-owns with his wife Melissa Morton under the umbrella of the Delphi Associates Investment Group.

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.

Morton used his monthly newsletter, Web site, appearances on a nationally syndicated radio show, and appearances at public events to promote his psychic abilities. According to the SEC, he made numerous materially false representations. For example, in one newsletter to potential investors, Morton stated: "I have called ALL the highs and lows of the market giving EXACT DATES for rises and crashes over the last 14 years."

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 also falsely claimed that the profits in the accounts were audited and certified.