African Gold Acquisition Corporation(AGAC) former CFO has been jailed for three years after embezzling $5 million he used to trade cryptocurrencies and meme stocks.
United States Department of JusticeThe former chief financial officer of African Gold Acquisition Corporation (AGAC), a special purpose acquisition company (SPAC), said in a press release on April 27 by Cooper Morgenthauof three different SPACIt is stated that he embezzled more than 5 million dollars. June 2021And August 2022transactions stated between the dates of Strategic Metals Acquisition Corporation I (SMAC I), Strategic Metals Acquisition Corporation II (SMAC II), and African Gold Acquisition CorporationIt was said to contain .
He Will Pay $5.1 Million In Compensation In Addition To His Jail
U.S. Securities and Exchange CommissionAccording to a related civil complaint by SEC Morgenthau, He 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 the funds while carrying out these transactions.
According to the information, Morgenthau is from private investors in a SPAC separate from African Gold. $4.7 million He collected more and said that this money would be used to launch another SPAC. At that time SMAC Iwas 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.
US Attorney Damian Williams“With the punishment that Cooper Morgenthau received today, SPAC supporters have been given the message that fraud in SPAC markets will be punished and that greed on Wall Street will face serious consequences,” he said in a statement.
