Cooper J. Morgenthau, a former CEO of a Special Purpose Acquisition Company (SPAC), was given a three-year prison term by the DoJ for theft of $5 million, the amount he employed for trading cryptocurrencies and “meme stocks.”
DoJ States that the Executive Stole $5M
According to a news statement issued by the US Department of Justice (DoJ) on April 27, Morgenthau stole over five million dollars from three distinct SPACs: AGAC, Strategic Metals Acquisition Corporation I (SMAC I), and Strategic Metals Acquisition Corporation II from June 2021 to August 2022.
In accordance with an additional civil lawsuit filed by the U.S. Securities and Exchange Commission (SEC), Morgenthau moved over $1.2 million from African Gold to his personal accounts, utilising the funds to trade cryptocurrency stocks, options, and shares.
Morgenthau Misused his Executive Role
When Morgenthau committed this crime, he was the Chief Financial Officer (CFO) of African Gold Acquisition Corp. He made use of his position inside the company to facilitate his illegal actions.
He not only stole from his company, but also from others who invested in two more SPACs he set up. Using his position inside the firm, the former CFO altered the organization’s accounting records and bank statements to keep his scam hidden.
DoJ Found that Morgenthau Spent Almost Every Penny
Meanwhile, he had spent nearly all of the money. Following the loss of funds, he supplied fabricated documents to African Gold’s accountants and an auditor ahead of the company’s public filing with the SEC, resulting in “material misstatements” in the company’s open accounting records.
No Questions Asked
Nobody questioned him, and his misdeeds had not been uncovered since he deleted his debit notices. Finally, he obtained up to $4.7 million in investment capital from another SPAC called as Strategic Metals Acquisition Corp.
At the end, African Gold uncovered the money withdrawals in August 2022, dismissed Morgenthau, and reported him to the SEC. Furthermore, he had been charged by the SEC for his role in the scam.
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