The US Securities and Exchange Commission has sued a self-proclaimed 'psychic' for fraud, alleging that he milked suckers for $6 million in a phony investment scam.
Sean David Morton, who calls himself 'America's Prophet' siphoned funds from over 100 investors with bogus claims that he had predicted every market high and low for 14 years, according to the SEC's complaint.
In fact, Morton failed to anticipate the depth and length of the dot-com crash ten years ago. He predicted a Dow Jones floor of 8,000 (it never went below 10,000) in October 2001, and the Nasdaq rocketing to over 7,000 in 2003 (it stayed at around 2,000).
In more recent times, the SEC claims Morton used his web site and radio shows to appropriate more than $6 million from true believers, promising big returns on the foreign currency market. In fact, half the money was pumped into his own shell companies, one of which is called Magic Eight Ball Inc, according to the complaint.
The SEC charges that Morton mislead investors and operated outside securities regulations. It seeks a restraining order and the return of his ill-gotten gains.