On June 19th, 2017 3:00PM (PST) Sean David Morton briefly appeared on an internet radio show from a cell phone inside of a traveling car, supposedly “on an LA Freeway” according to the host of the radio show. Morton wanted to clear the air for his regularly scheduled listeners. Though the call was spotty, you could still make out parts of the conversation on the air. Morton stated , “Everything’s all right. I’m fine. “ He went on to say that he had filed an appeal for a hearing to the Supreme Court at 9:00 a.m. on Monday. He told listeners that he intends to get a response from the Supreme Court tomorrow as to whether they will hear his case, which he claims is mainly based on several “constitutional rights violations”. He then went on to say that the “lower courts” do not have custody over constitutional arguments, hence his reason for petitioning the higher courts.
However, Morton failed to mention to his audience that he did not appear before a judge for sentencing today which had resulted in a warrant issued for his arrest. He declined to comment as to why he was calling into the radio show from a car, rather than from his home in Hermosa Beach, California. He also didn’t say where he was headed or who was driving the car. There was no mention of his wife Melissa, other than to thank the listeners for the donations.
The Department of Justice responded to our email and verified Morton’s arrest warrant.
“He (Sean David Morton) failed to appear for sentencing as ordered by the court here in Los Angeles. The judge has issued an arrest warrant. His case is not before the Supreme Court in any way.” Department of Justice, US attorney’s office is not aware of any appeal.
Confirmed actual warrant issued.
No one has any information as to Mr. Morton’s whereabouts at this time. Prosecutors in the case recommended an 87 month term of imprisonment for Morton, but that was before he took off running.
NBC4 News Reported “Sean David Morton, 58, and his wife were convicted in April 2017 of multiple counts of conspiring to defraud the Internal Revenue Service by passing bogus checks and bonds. As a result of the scheme, the IRS erroneously issued a refund of $480,323 to the couple.Prosecutors were expected to recommend a prison sentence of more than seven years. When Morton — who is representing himself — failed to appear, U.S. District Judge Stephen Wilson issued the arrest warrant “forthwith.”
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On April 4, 2017, 11:00 PM EDT Law360 in Los Angeles reported the following on Sean David Morton and his wife Melissa Morton. – The well-known radio show host & ‘psychic’ along with his wife Melissa Morton was initially accused of seeking millions in unwarranted tax refunds believed to be part of a complicated theory known as STRAWMAN, which states that Americans are essentially the collateral backing for U.S. currency and can pay debts through their “secret accounts.” A federal jury heard the case on Tuesday and convicted the couple on all counts.
Defendants Sean David Morton and Melissa Morton were charged with “conspiring to defraud the United States”, filing false tax claims and passing fictitious financial instruments, all of which are in violation of federal laws. The charges stem from their participation in a “redemption scheme,” which according to the government’s trial brief is “the most prevalent nationwide scheme used by tax defies and sovereign citizens”.
Side bar: What is a Redemption scheme? Aka, Redemption, Strawman or Bond Fraud. Proponents of this scheme claim that the U.S. government or the Treasury Department control bank accounts—often referred to as “U.S. Treasury Direct Accounts”—for all U.S. citizens that can be accessed by submitting paperwork with state and federal authorities. “The redemption movement consists of supporters of an American conspiracy theory called redemption theory, which involves claims that when the U.S. government abandoned the gold standard in 1933, it pledged its citizens as collateral so that it could borrow money. Other similar theories claim this collateral action happened in 1913 with the establishment of the Federal Reserve System. The movement also asserts that common citizens can gain access to funds in secret accounts using obscure procedures and regulations. The redemption movement is related to the sovereign citizen movement.”
Back in April, Law360 reported that “During opening statements Tuesday, Assistant U.S. Attorney James C. Hughes told the jury that the Morton’s individually filed false income tax returns with the IRS for certain years starting from 2005. Sean Morton’s returns sought millions of dollars in refunds. One scheme the couple employed was filing phony Forms 1099-OID, showing purported income interest earned and taxed from financial institutions like Bank of America and JPMorgan Chase Bank to support their claims for refunds.”
Side bar: What is a 1099-OID scam? 1099 OID fraud is a common scam used to obtain money from the IRS via filing a false tax refund CLAIM. Filers have claimed refunds (money) based on the theory that the U.S. federal government maintains secret accounts for U.S. citizens and that taxpayers can gain access to the accounts by issuing 1099-OID forms to the IRS.
“There’s a problem with this. The banks are going to tell you that they never issued those 1099s to the defendants. They never earned any interest from the banks and the banks never paid any withholdings to the IRS. These withholdings didn’t exist.” – Assistant U.S. Attorney James C. Hughes from his court address.
The Morton’s also submitted bogus documents titled “Coupon for Setoff, Settlement, and Closure” and “Non-Negotiable Discharging Bond and Indemnity,” which they claimed to be actual investment securities and financial instruments issued under the authority of the United States that could be used as a means to pay off debts.
“Those who try to defraud the tax system often try to use complicated ‘legal’ filings to hide their true goal – stealing money paid by other taxpayers,” said United States Attorney Eileen M. Decker. “IRS agents and federal prosecutors have the tools to investigate and prosecute these sophisticated schemes, which undermine the entire tax system and ultimately victimize law-abiding taxpayers.”
During his opening statement, Sean Morton told the court that he was being falsely accused of doing something wrong when he did nothing more than “follow the advice of people I respected, who had a deep understanding about the financial system.” He also lauded the first Americans, who wished to “live free from the burdens of the crown” and who wrote the Constitution; said that he and Melissa Morton were not married by law because “that puts more than one person in bed with you”; and exclaimed he’s a film producer and investigative reporter, “who exposed Area 51,” the military site where there’s been claims of UFO sightings.
The government wants to throw the couple in jail for the rest of their lives, Morton said, “for filing paperwork that didn’t harm anybody.”
Didn’t harm anyone? To the contrary. According to tax law, the Mortons not only defrauded the government, they defrauded all tax payers by several means, one that includes an allegation that Sean Morton filed a false 2006 income tax return in 2010 that requested a refund of $2,809,921. “As part of the scheme, they falsely reported large withholdings and claimed they were owed refunds from the IRS.”
U.S. Attorney Sandra R. Brown said after the Mortons’ four- day trial. “These fraudulent schemes are designed to do only one thing — victimize others for profit.”
In court Tuesday, the attorney for the government said that while most of the refunds the defendants submitted were caught by the IRS, so no refunds were paid, but one “slipped through,” and in April 2009 the IRS paid Melissa Morton a refund of $480,322 that was deposited into a joint account held by the Both Sean and Melissa Morton.
“On the same day the $480,323 refund was deposited into their joint bank account, the couple took immediate steps to conceal the money, which included opening two new accounts, transferring over $360,000 and withdrawing $70,000 in cash.”
When the IRS took steps to collect the erroneous refund, the Mortons began a campaign to thwart the government’s efforts. Specifically, when the IRS placed a levy on the couple’s joint bank account, the couple began submitting a shower of bogus documents, instructing the agency to draw upon funds with the U.S. Treasury to satisfy their debt, according to federal prosecutors.” http://www.nbclosangeles.com/news/local/Bench-Warrant-Issued-For-Hermosa-Beach-Psychic-429501483.html
The Mortons allegedly committed fraud not only against the government but also against others. One witness will testified that she paid the couple $2,500 to put together the bond paperwork that they said would pay off her student loan debt. It didn’t, and the Mortons refused to provide her with a refund.
“Morton also defrauded the government out of nearly half-a-million dollars by filing a false tax return and forging other tax documents by submitting multiple copies to various IRS offices in an effort to circumvent the IRS’s system. In all, Morton attempted to claim more than $12,000,000 in refunds even though he does not have any verifiable income.” UFO WATCHDOG
The couple was convicted and Sean David Morton was set for sentencing on 6-19-17 but did not show up to the hearing.
“Morton filed a number of disjointed, rambling briefs and motions with the court that prosecutors said were designed to delay the criminal trial. Those documents submitted to the court included Morton proclaiming himself judge of his own court, stating the courts had no jurisdiction over him, attempting to withdraw his not guilty plea after he’d been convicted, notifying the IRS he did not fall under their rules, filing a state lawsuit in an attempt to stop federal criminal proceedings against him, and more. A jury took two hours to return guilty verdicts against Morton and his wife on all counts.” UFO WATCHDOG
CR 2015-00611-SVW USA v. 1. Sean David Morton BOND 2. Melissa Morton BOND 10:00 AM 1 . 1st Superseding Indictment: 18:371: Conspiracy to Defraud the United States 18:287;2(b): False Claims To The United States Causing an Act To Be Done 18:514(a),2(b): Fictitious Obligations Causing an Act To Be Done
The United States is represented by Assistant U.S. Attorneys Valerie L. Makarewicz and James C. Hughes.
Sean David Morton is representing himself pro se. Melissa Morton is represented by Steven Andrew Brody of the Law Offices of Steven A. Brody.
The case is U.S. v. Morton et al., case number 2:15-cr-00611, in the U.S. District Court for the Central District of California.
Sources and reading
- Bogus psychic and convicted felon Sean David Morton was scheduled to be sentenced for his part in a tax fraud scheme. His wife, Melissa Ann Morton, was also convicted. Prosecutors in the case recommended an 87 month term of imprisonment for Morton. http://ufowatchdog.blogspot.com/
History Interesting read about Sean David Morton at it back in the early90’s ,
Way back machine archive of his dodgy dealings with some huge claims in his resume.
“In as much as Sean truly believed that what he filed with the IRS was correct, it doesn’t mean that it was an effective process. You can have all the belief you want but if you don’t apply proper procedure through a proven process all your efforts are for not and you buy yourself a one-way ticket to prison.” Anonymous Hacktivist
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