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