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With Not Enough Plain Vanilla Corruption Out There, The SEC Is Now Chasing After Psychics
Don't say the SEC doesn't work hard for its billion dollar budget. The syndicate endorsing corruption (and not even worthy of capitalization), has released a statement indicating it is now pursuing enforcement action against a "known" psychic "who fraudulently raised $6 million after telling investors he could predict stock market highs and lows." Uhm, so does that mean that the SEC is now after every single pundit on CNBC as well? To be sure, while there are many more egregious cases of market manipulation out there, this one will surely make the late night comedy circuit.
From the press release:
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 to his investing team. In one
newsletter to potential investors, Morton falsely stated: "I have
called ALL the highs and lows of the market giving EXACT DATES for
rises and crashes over the last 14 years." Morton used his monthly
newsletter, his Web site, his appearances on a nationally syndicated
radio show, 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. "Morton's self-proclaimed psychic powers were nothing more than a scam
to attract investors and steal their money," said George S. Canellos,
Director of the SEC's New York Regional Office.
Obviously the SEC is an expert in refuting all things prophetic: after all the agency which yet to charge any financial professionals with any wrongdoing over the financial crisis (and has thus earned the very appropriate adjective of "those idiots" from Henry Markopolos) is well aware that the kind of frontrunning as exhibited in the stock trading pattern of New York Bancorp can only come from legitimate inside information, not from crystal balls. Which, however, does not explain why Mary Schapiro has still to investigate that particular piece of market fraud.
More from the press release:
According to the SEC's complaint, Morton fraudulently raised more than
$6 million from more than 100 investors for the Delphi Investment
Group. Morton invested only about half of the funds with foreign
currency trading firms. Unbeknownst to investors, instead of investing
all of the funds into foreign currency trading firms, Morton or his
wife diverted some of the investor funds. For instance, the Mortons
diverted at least $240,000 of investor funds to their own nonprofit
religious organization, Prophecy Research Institute (PRI).
Here is a semi-biographical piece on David from The Art of Conscious Living:
Sean has achieved international fame and recognition for his
stunningly accurate predictions of future events. He gave exacts dates,
magnitudes and epicenters for the 1989 San Francisco earthquake, then
went on to predict natural catastrophes such as the ‘92 Landers and ‘94
Northridge earthquakes, and also the ‘95 quake in Kobe, Japan, to name
only a few. He has made startling predictions on national radio and
television, only to have those programs return to feature him when his
predictions came true.His political and economic predictions shocked the nation. Years in
advance, he foresaw Clinton’s impeachment, the controversy over the
2000 vote and the election of George W. Bush. He also predicted exact
dates for the post-90’s decline of the DOW and NASDAQ, and has given
the exact levels — and timing-of their subsequent rise and fall.Sean first achieved national recognition when his expeditions to
Area 51 made front-page news in newspapers across America, including
the LA Times. He later discovered a mountaintop vantage point above the
base, thus bringing Area 51 out of the shadows and into the realm of an
international discovery. He was also the first to break national
stories in the world press not only on Area 51, but also on The Dulce
Mesa, The Phoenix Lights, The Chupacabra, The Area 51 Alien Interview,
and The Adrain Pleiadian Contactee Case. Since then, Sean has appeared
on, written, directed, produced and consulted for many television
programs including Hard Copy, Strange Universe, Sightings, Now it Can
Be Told, and The Conspiracy Zone.Sean also hosted his own national radio show on over 250 stations on
two national networks and has been a the #1 most popular guest on Coast
to Coast AM with Art Bell for over 13 years since his first appearance
in 1991.In May 2003, Sean wrote and directed his first feature film, a
comedy, murder mystery Whodunit, which was a spoof of reality TV game
shows, the award winning “JOE KILLIONAIRE”. The movie is tearing up the
Independent Film circuit and is achieving the status of a CULT CLASSIC.
It won the audience award for best picture at the Los Angeles DANCES
WITH FILMS FESTIVAL, and has been officially selected at CREEPFEST (Los
Angeles) HORRORFEST (Erie, PA) The Farmington, MI, FUNNYFILM FEST, The
Coney Island Film Fest, and the New York, Los Angeles, Miami and Las
Vegas International Film and Video Festivals.
A copy of Morton's newsletter can be found here, and David's website, can be accessed here (and likely to be taken down soon). We fail to see how it is any different from any other sellside research these days, absent a few disclaimers here and there.
h/t The Fake Mary Schapiro
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Speaking of plain vanilla corruption, check out MRVL options trading into the close.
Morton should have seen this coming ....
LOL
Poor Sean, he was fun to listen to on the radio. If anything, the idiots that listened to him should be singled out and removed from the business. He serves a purpose. But then again, that would make too much sense at a time when nothing makes sense...
Looks like a pretty standard gold-bug...
http://www.sec.gov/news/press/2010/2010-34-newsletter.pdf
"Morton should have seen this coming ...."
Classic. Line of the year so far...
The Swami should have seen it coming...
The country is falling apart kidnapped by the financial industry and mainstream media... and the SEC has no better use for its resources than going after a psychic that allegedly does something that the financial industry and mainstream media do all the time. The country is absolutely, completely, totally out of control... and the "people" are still having fun watching American Idol and the like instead of protesting. 10,000% unbelievable.
Just a lucky guess.
After they spend 10M to prosecute this big fish we will be 4M in the hole. Good job! Only 2-4 trillion to go.
If he's such a great psychic, he should have know the SEC was going to nab him.
You win the thread. You lose the spelling contest.
Has Cramer ever denied having psychic powers?
SEC...chock FULL O FAIL!
"Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money,". And this is a legitimate method of doing business in America. Our top people operate under the same scenario. Uncle Ben, Tiny Tim, Hankie Paulsen and we cannot forget the biggest prognosticator of them all Mr. Greenspan!
We should run that video of Shalom Bernanke, you know, the one where he fucks up every single forecast in the known world. Bernanke's scam cost us a whole lot more money than this clown ever will.
So does that mean we can arrest Jim Cramer?
Just when I thought the SEC could fail no more--- they stoop lower than a pygmy limbo dancer.
What if I claim that Bill Gross has been trying to mesmerize me? Or that the hypnotic charms of Maria Bartiromo's breasts were forcing me to buy BAC at $45?
Nice to know that a touch of sensationalism is a fair replacement for any actual regulatory abilities.
The question to ask is this. Was this guy actually hurting anyone, or was he merely liberating funds from stupid people who would have lost that money regardless?
Always the low-hanging fruit.
No one at the SEC ever would risk his or her career - and lucrative future private sector employment - chasing anything other than an image-enhancing slam dunk.
Same for FINRA, the NYSE and the IRS. No one would be able to justify a several-year, multi-million investigation that is not assured results, therefor no Bernie Madoff examination even when handed to them on a platter.
Oh so true. We would seem to be a mediocre corrupt banana republic . . . though dressed as the State sponsored media would represent it in the most chic of Motherlands.
What kind of servants does Justice have here?
We all know that it's time for the people who shake cages at work to finally start getting serious. In retrospect, it will prove to have been the best test of their lives. The one that mattered most.
The government has this all wrong. They shouldn't put this guy in jail, instead, they should hire him to sell their Health Care Plan, and look into the future to tell unsuspecting Americans to let the government take their IRA money and invest it into Triple-A government bonds with guaranteed returns and future profits.
If this guy, sitting there with a good 1/5th of Gin and a couple of doobies, can predict the future, hell... use him to lead Americans into fake profits via the SEC, CFTC, DOJ, FBI, and CIA. This is great comic releief.
What makes you think that they aren't going to do exactly what you say? Arrest and prosecute, then offer a plea bargain.
well was he right on some of his calls ..maybe pretcher is next ,, lol
+10
He couldn't have been any worse than Cramer. I guess there is a thin line between scam and a legal scam.
" I guess there is a thin line between scam and a legal scam."
The Difference Between Scam and Legal Scam:
Where you went to college and who you went to college with... or who's your daddy? (Trump-ass loser)
Maybe Morton should do his community service at the SEC helping them to divine their next perps. Help wanted?
Let's see--the SEC ignores Markopolos's evidence of Madoff's ponzi, and instead they go after a market-timer?
What a bunch of douchebags.
OMG. This just fully entered the realm of the surreal. And slammed the door behind it.
WTF does one say to this?
Beautiful answer to that question, ZH. Very nice piece, guys.
Did the psychic dump millions of shares during the cycle of his visions and broadcasts or did he conspire with brokers etc.. ?
The market is corrupt. End of story. Banks and brokers collude to fleece investors. Their pay day has to come from some place and money is simply not growing on trees.
Trying to regulate this is redundant. Best would be to declare the markets a place of massive corruption and let the chips fall where they may.
Wait.. I'm getting a vision... gold is going to skyrocket!!!
The SEC reminds me of the Miami/Dade Drug Enforcement Agency back in the 80's. They loved busting small defenceless fish as it keeps the sheeple thinking they are actually going something PLUS it eliminates the competition. Meanwhile the Big Fish make all the right bribes, i mean pay the right people the appropriate 'high fees' necessary to 'stay in business'.
SSDD or should that be SSDAgency
Anyone talking about stocks or even thinking about stocks will be under scrutiny.
Unless approved by the Fuehrer, nobody is allowed to discuss the markets let alone give any advice.
That is where this is headed, folks.
Financial fascism at its best.
Keep smilin'!
I've met Sean Morton on several occasions and he is a stand up guy. I'm surprised the Illuminati to so long to take him down. I'll believe Mr. Morton any day over the SEC. They are the most corrupt basterds on the planet next to Goldman Sucks! Hopefully their will be a public trial and Sean can stick it to those basterds!
If he can prove he works for GS will they release him with an apology?
So he’s the one that’s been creating the ‘daily’ acquisition rumors and preceding call purchases – I thought it was the act of some extremely nervous hedgefunder.
His mistake;downward predictions - poor fool!
Why isn't any of Madoff's victims suing the SEC for ignoring the evidence (not once but twice) handed to them by Markopolos. They were negligent in their duties to say the least. I would think that they would have an excellent case against them.
I have this 8-ball that I got when I was a kid. I have been using it to make decisions about what stocks to buy and sell. It has been wrong every time. The only time it gets the question right is when I ask it if I am a dumb-ass for using the 8-Ball to provide me with investment advice. It always says yes.
I'm psychic. Who has a question for me? Actually, I know who it is, but go ahead and post it below for all to see...
Because THESE are the types of people who pose the most risk to the integrity of our capital markets! YEAH!
OMG........WTF, and I hope and pray surfers are not that stupid. I stretch, yes, but there is always hope.
Perhaps Ben needs a reading?
Hey ! C'mon now ! Let's give credit where credit is due. This could just be the tip of the iceberg. Who knows where this could lead ?
Psychic Friends Hotline Bearer Bonds
Uri Geller Hedge Fund
The Amazing Randi IPO
Mary's got her pencil sharp for this one.
I am going to sound like a crackpot, but I actually prevented many losses (stayed away from banks and invested in gold) and made money because I liked to listen to this guy. He was bang on with a prediction of the a great recession starting in the third week of October 2007, which years later matched the beige book very well.
Here is is recommendation from January 2009:
"Coinciding with the coming Chinese Year of the Ox, beginning with the New Moon Eclipse on January 26th, the economy should pick up substantially, and panic should begin to subside. We should see a burst and flurry of activity through May and June."
Money put into beaten up stocks just after January 26th did very well.
He always claimed to have sources inside the government and enemies in various government factions. Perhaps one is coming after him?
It will be fun to see what happens. I always thought he was a bit of a charlatan, but his recommendations were often good. I will miss his newsletters.
"Uhm, so does that mean that the SEC is now after every single pundit on CNBC as well?"
So SEC?
Bozo the Clown hair and a cow bell and it's Cramer...
So Tyler?
If Morton had silicon tits and collagen lips... would it be Caruso~Cabrera?
Cramer's stchick is old. He needs more cow bell.
I love that when reading this story the banner ad at the top of this page was for "Live Psychic Readings" :)
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