3 years in prison for the former CFO who stole $5 million to trade cryptocurrency and "meme stocks." - Lotal Ghana

 3 years in prison for the former CFO who stole $5 million to trade cryptocurrency and "meme stocks."

 

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Cooper Morgenthau stole $5 million from three distinct firms, nearly all of which he lost by trading cryptocurrencies and "meme stocks."

 

 

 

After stealing $5 million used to trade cryptocurrencies and "meme stocks," the former CFO of a special purpose acquisition company (SPAC) received a three-year prison term.

 

 

 

Cooper Morgenthau, the former CFO of African Gold Acquisition Corp. (AGAC), allegedly embezzled more than $5 million from three different SPACs—AGAC, Strategic Metals Acquisition Corp. I (SMAC I), and Strategic Metals Acquisition Corp. II (SMAC II)—between June 2021 and August 2022, according to a press release from the Department of Justice (DOJ) on April 27.

 

 

Approximately $1.2 million from African Gold, according to a related civil lawsuit from the U.S. Securities and Exchange Commission (SEC), was sent to Morgenthau's personal accounts, where he utilized the funds to trade equities, options, and so-called meme stocks.

 

 

 

He almost completely blew the money in the process.

 

After the losses, he later gave forged records to African Gold's accountants and an auditor in advance of the company's SEC filing, which resulted in "material misstatements" in the company's public financial records.

 

 

 

In the meantime, Morgenthau obtained an additional $4.7 million from private investors in a SPAC unaffiliated with African Gold on the false pretense that the funds would be used to establish another SPAC.

 

 

 

Unfortunately for the investors, Morgenthau actually utilized the newly obtained funds to continue trading in cryptocurrencies and meme stocks in addition to covering his losses at African Gold.

 

 

 

Prior to its initial public offering (IPO), SMAC was soliciting money from private investors.

 

 

On January 3, Florida resident Morgenthau admitted guilt to one count of wire fraud. He also had to forfeit $5.1 million and make additional restitution of $5.1 million on top of his three-year prison term.

 

 

 

"With today's sentencing of Cooper Morgenthau, SPAC promoters have been sent a message that fraud in the SPAC markets will be punished and greed on Wall Street will be met with serious consequences," U.S. Attorney Damian Williams said in a statement.