The Mortons are alleged to have defrauded around 100 customers of $6 million between 2006 and 2007. According to the SEC, only a fraction of the investments received by them went into foreign exchange trading accounts and the rest was placed in shell companies run by them for their own benefit.note 1
Yesterday, SDM sat down for a nearly two-hour skype chat with Kerry Cassidy. Much of it was sheer bullshit about UFO bases in Antarctica, but Kerry did want an update on the legal situation--in the circumstances, who would not? Morton, of course, said that it was all the fault of everybody except he and Melissa. "The attacks on Melissa and I are just so outrageous," he said. Here's his explanation of the missing six million spondulicks.
50:51 SDM: "Eight years ago we were working with Alexander Adams. Alexander Adams was a CPA. And what we did is, we had a ... we were dealing with foreign exchange trading, and I had a trader that didn't do what I told him to do, and basically we turned about $525,000.. almost... almost $6 million, and the trader tanked the accounts... he just did the exact opposite of everything I told him to do, and, er... lost the money."note 2Well, what are we to make of that strange "$525,000.. almost $6 million"? Could that be a slip of the tongue, unintentionally revealing how much of the $6 million was actually invested in the market, leaving $5,475,000 to find its way into the pockets of the Mortons? If I had been Kerry Cassidy I'd have asked about that. I'd also have asked how either sum could have completely disappeared in currency trading. I mean, if you trade on the NYSE or NASDAQ there's always the possibility that you'll back a company that literally ceases to exist--but with currency, your assets may diminish because of bad luck or bad judgement, but it's hard to see how they could vanish outright. Unless some unbelievable nincompoop bought $525,000 worth of Zimbabwe dollars, I guess.
Kerry, however, let SDM completely off the hook. And that's the more strange since according to Bill Ryan (Kerry's ex) she personally lost $116,000 invested with Morton. This was money inherited from her mother, which she had intended to use to start Project Camelot. Ryan says he himself lost about $25,000.note 3 To me, it's a bit surprising that Kerry and Sean are even on speaking terms, let alone good friends.note4
In yesterday's interview, Morton then launched into a 15-minute self-justifying tirade, accusing the IRS of entrapment and of violating the statute of limitations for tax crime. He explained that the core of the case is a tax refund of $480,323 which was erroneously paid to the Mortons on their 2008 tax filing. He pleaded that he submitted bonds as repayment of the sum, and acted in good faith. What he didn't say, of course, was that the IRS says $480,323 was the amount the Mortons had fraudulently claimed as rebates due on non-existent overpayments. What Morton called an "IRS computer error" did not come out of the blue sky--it had to have been the result of a claim, didn't it?
In a news release after the Mortons' conviction in April, Sandra R. Brown, Acting U.S. attorney, Central District of California, wrote this:note 5
"On the same day the refund was deposited into the Mortons’ joint bank account, the couple took immediate steps to conceal the money, which included opening two new accounts, transferring over $360,000 to the two new accounts, and withdrawing $70,000 in cash.
"When the IRS attempted to collect the erroneous refund from the Mortons, the Mortons presented to the IRS various “coupons” and “bonds” that purported to pay off their debt with the IRS. The Mortons created and submitted these bogus documents to the IRS, instructing the agency to draw upon funds with the United States Treasury to satisfy their debt"They're out to get you
At the end of this tirade, Kerry showed no sign of comprehending, instead complaining of legal troubles of her own (something about Youtube enabling piracy of her 600 videos and taking a cut itself.) Then, she connected this whole thing to her well-known theory that the gubbmint is out to get you.
1:06:02 KC: "I do want to say the real reason you're being targeted is because of the work you do. Had you not written [the] Sands of Time book, I think they would leave you alone. But as it is now, umm...it being a best-seller and all of that, and also revealing quite a bit about the Secret Space Program... ehm... you know, this is... this is their issue, I guess they're trying to shut you up, basically."I have to laugh when I recall that Morton, on the 2016 Conspira-sea cruise, declared "I'm a legal scholar." Next Monday we'll know how long his scholarship is going to be available to a jail full of convicts---all of whom maintain, naturally, that they're innocent.
Update 15th June
Today ufowatchdog reports that Morton filed an appeal with the 9th Circuit Court claiming he had not been given a fair trial. Morton's motion was again denied and the court also ordered all future motions filed by Morton would be considered "moot" and "No further filings will be entertained in this closed case." Looks like the technique of motion-flooding the court simply gets them pissed off.
Update 19th June
Morton did a bunk and made himself unavailable for sentencing today. When the feds catch him--as they surely will--I imagine that'll be good for a few extra years on his jail time. I also imagine the marshals will be knocking on Kerry Cassidy's door any minute now...
Check ufowatchdog for many more deets, docs....
 Psychic Sean David Morton scammed $6M convincing people he could predict stocks' fortune, SEC claims --New York Daily News, 5 March 2010
 The trader was Daryl Weber, who Morton described in the prospectus for Delphi Associates as "A mathematical genius, FX trader, statistical analyst, and computer software engineer."
 Project Avalon Forum, 7 February 2010
 In the same Project Avalon forum, Bill Ryan wrote this: "Astonishingly for me, as an aside that really does say something about Kerry, she has completely let that go and appears to bear Sean no ill-will of any kind. I don't know many people who could do that, and I have been unable to do that myself. "
 Hermosa Beach Couple Found Guilty in Tax Scam and Passing Fraudulent Financial Instruments to Pay Off Debts --US Attorney's Office, Central District of California, 7 April 2017