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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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