The former CFO of African Gold Acquisition Corporation (AGAC) has been jailed for three years after embezzling $5 million, which he used to trade cryptocurrencies and meme stocks.
Cooper Morgenthau, former chief financial officer of African Gold Acquisition Corporation (AGAC), a special purpose acquisition company (SPAC), has embezzled $5 million from three different SPACs, the United States Department of Justice said in a press release on April 27. It was reported that he spent too much money. Transactions stated to have been made between June 2021 and August 2022 were said to include Strategic Metals Acquisition Corporation I (SMAC I), Strategic Metals Acquisition Corporation II (SMAC II) and African Gold Acquisition Corporation.
He Will Pay $5.1M In Compensation In Addition To His Jail
According to a related civil complaint from the US Securities and Exchange Commission (SEC), Morgenthau transferred approximately $1.2 million in funds from African Gold to his personal accounts and used that money to buy and sell options on cryptocurrencies and meme stocks. Morgenthau lost almost all of its funds while carrying out these transactions.
According to the information, Morgenthau has raised an additional $4.7 million from private investors in a SPAC separate from African Gold, which he said will be used to launch another SPAC. At the time, SMAC I was in the process of raising funds from private investors prior to its initial public offering.
Noticing the withdrawals in August 2022, African Gold fired Morgenthau for misconduct and notified the SEC of the matter.
Morgenthau, a Florida resident, was found guilty of wiretapping fraud on January 3. He was ordered to pay $5.1 million in damages, in addition to a three-year prison sentence.
In a statement, US Attorney Damian Williams said: “The sentence that Cooper Morgenthau received today has given the message to SPAC supporters that fraud in SPAC markets will be punished and that greed on Wall Street will face serious consequences.”
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