Stock Market 'Psychic' Charged With Duping Investors
He dedicated one issue of his newsletter to his stepfather, who he claimed "... raised me to know what is right and I would not be the person I am without him." The SEC complaint raises serious questions about exactly what kind of person he is.
According to George S. Canellos, director of the SEC's New York Regional Office, "Morton's self-proclaimed psychic powers were nothing more than a scam to attract investors and steal their money."
Morton raised over $6 million from more than 100 investors. The SEC claims he and his wife diverted some of the funds to their own nonprofit religious charity. He allegedly invested about half the funds with foreign-currency trading firms and falsely represented that the profits in the accounts were audited and certified.
The SEC seeks a restraining order and disgorgement of Morton's "ill gotten gains," plus penalties and related relief.
The allegations of the SEC complaint remain to be proven in court, but if they are accurate, it won't take a psychic to predict Morton's future.