Feds Sue 'Psychic' Over $6M Stock Scam

SEC: man preyed on 'gullible' investors
By Emily Rauhala,  Newser User
Posted Mar 5, 2010 5:00 AM CST
Not even a psychic could predict the crash of '08.   (Shuter Stock)

(Newser) – The SEC is suing a self-proclaimed stock 'psychic' for allegedly bilking $6 million from gullible investors. Regulators say Sean David Morton, who runs the Delphi Investment Group out of California, falsely claimed to have a record of predicting the market. He funneled investor money into foreign currency trading firms and to a non-profit run by his wife, the suit claims.

Morton, who didn't know about the suit until he was contacted by the Daily News, says it's not his fault, noting that he lost out when his own trader refused to be guided by his supposed foreknowledge. "The trader I worked with did not take my advice, saying it would be fiscally irresponsible, but I was right." He plans to declare bankruptcy. "I lost more money in this so-called 'investment scheme' than anyone," he says.

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