SEC Charges Former CFO of SPACS For Fund Embezzlement
The SEC disclosed fraud charges against Cooper J. Morgenthau, the former CFO of African Gold Acquisition Corp (NYSE: AGAC), a special purpose acquisition company, for stealing over $5 million from the company and investors in two other SPACs that he incorporated.
From June 2021 through July 2022, Morgenthau allegedly embezzled money from African Gold and stole funds from another SPAC series, Strategic Metals Acquisition Corp I, and II.
Morgenthau allegedly concealed unauthorized withdrawals by falsifying African Gold's bank account statements.
During the same general period, Morgenthau raised money from Strategic Metals' investors based on misrepresentations when Morgenthau misappropriated the money for personal use.
Morgenthau faces a possible prison sentence of 6 - 7.25 years, Reuters reports.
Morgenthau agreed to relinquish $5.11 million, pay an equal amount in a refund, and settle U.S. SEC's related civil charges.
Authorities said that between June 2021 - August 2022, Morgenthau stole over $1.2 million from African Gold.
Morgenthau then raised $4.7 million from investors in Strategic Metals to cover his losses, only to lose most of it through crypto trading.
African Gold fired Morgenthau last August after he ran out of money and vendors refused to work for the company.
Price Action: AGAC shares closed at 10.05 on Tuesday.
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