SEC Sues Psychic For Securities Fraud : Planet Money A man who said he'd predicted every market high and low raised $6 million from investors, according to the SEC.
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SEC Sues Psychic For Securities Fraud

"I have called ALL the highs and lows of the market, giving EXACT DATES for rises and crashes over the last 14 years," Sean David Morton allegedly wrote in a newsletter back in 2006.

Yes, that was a bold claim. Sure, the use of ALL CAPS may have been excessive. Then again, this was back in the bubble days. Anything seemed possible!

So Morton managed to raise $6 million from investors, according to a lawsuit the SEC filed today accusing him of securities fraud.

I tried to get in touch with Morton, whose Web site describes him as a "natural psychic, trained Remote Viewer, intuitive consultant, investigative reporter, and accomplished award winning director, screenwriter and film and TV producer." There was no reply to the email I sent to his company, and the phone number listed on his Web site was busy.

Here are some of the key accusations in the SEC's lawsuit:

Morton claimed that he would use his psychic expertise to provide investment guidance to his investing team, and falsely touted his historical success in psychically predicting the various rises and falls of the market. Morton further claimed that he would use the pooled funds to trade in foreign currencies and distribute pro rata the trading profits among the investors. However, Morton lied to investors about his past successes, and about key aspects of the Delphi Investment Group, including the use of investor funds and the liquidity of the funds, and that the profits in the accounts were audited and certified.