Sean David Moron vs. the SEC

The Securities and Exchange Commission is going after Sean David Morton, for allegedly collecting $6 million in money from investors in his "psychic" investment fund. Morton claimed his "psychic" powers could be used to substantial profit in the foreign currency trading markets. Morton collected $6 million from investors, but allegedly only placed $3+ million in trading accounts and used the rest of it for his "non-profit" and personal purposes.

The SEC has accused Morton of violating many sections of the Securities Act and Exchange Act, including Rule 10b-5. In the complaint, the SEC points out many false statements by Morton and numerous stories of Morton (allegedly) lying to induce investors to hand over money to him. Morton also allegedly failed to complete any SEC requirement in relation to registering his investment companies, and a statement he made to Coast to Coast AM appears to show that Morton did not think he was responsible for registering.

The SEC generally does not go after people it does not have an air-tight case against, with the notable exception of Mark Cuban. Additionally, Morton does not have the best litigation track record, particularly when you consider he calls himself "Americas' Psychic". UFOWatchdog.com exposed Morton repeatedly, pointing out every contradiction and fallacy that Morton stated about himself. Morton eventually sued the author of UFOWatchdog.com for defamation, but was found to have violated the Anti-SLAPP statute in California and ordered to pay legal fees of approximately $16K.

Morton also apparently sued the SEC in 2009 while the SEC was investigating him, claiming that the SEC was going after him solely to take taxpayer-paid trips to Disneyland and In-N-Out Burger. While noble goals of the SEC if they were true, the lawsuit was dismissed in December 2009.

Of course, Morton's psychic powers in dealing with the legal system and the SEC are comparable to his past predictions. Click the link to see some of the "psychic visions" of Morton, and you'll see that his only success is suckering people out of money. Hopefully the SEC puts Morton into a position where he cannot play PT Barnum anymore.