California Stock Psychic Sued by SEC for Securities Fraud

Thumbnail image for pyschic.jpgToday, the Securities and Exchange Commission (SEC) filed a securities fraud lawsuit against Sean David Morton of Manhattan Beach, California, alleging that Morton falsely claimed he would use his psychic expertise to provide investment guidance. The SEC also alleged that Morton lied to investors about his investing track record.

The SEC’s complaint includes a lengthy and detailed analysis showing that Morton’s predictions over the years have proven to be wildly inaccurate. Below are a few examples of the false claims that the SEC has accused Morton of making:

  • In his July 20,2006, newsletter Morton wrote: “I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years.”
  • During a November 21,2001, radio broadcast, Morton said: “I’ll give you the exact date…April 2002…[B]etween April and June of 2002 [the DJIA] is going to be the steady rise in the market. That’s where it’s going to really pick up and pick up stability. By December of next year,…it’ll be back up into the realm [of] high 11,000, 12,000 or so…” In reality, the DJIA ended the year at 8,431.
  • Morton’s Website touts the “ASTONISHING PSYCHIC HITS” he has made in predicting “The EXACT dates for prices of GOLD” from 2004 to 2007″ and that he “predicted exact dates for the post 90’s decline of the [DJIA] and NASDAQ,and has given the exact levels–and timing–of their subsequent rise and fall.”

According to a UPI news report, Morton claims that he predicted the stock market crash but his trader refused to act on his advice saying it would be irresponsible. Morton also said that all the money was gone and the he was filing for personal bankruptcy. As of today, his website is still active.

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