SEC Charges Former SPAC CFO For Misappropriating Nearly $5 Million

Posted on January 16th, 2023 at 2:39 PM
SEC Charges Former SPAC CFO For Misappropriating Nearly $5 Million

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has changed the former CFO of African Gold Acquisition Corp., a special purpose acquisition company (SPAC), for misappropriating at least $5 million from the company and investors in two other SPACs that he had incorporated.

The former CFO, Cooper Morgenthau, embezzled funds from African Gold and another SPAC series called Strategic Metal Acquisition Corp. between June 2021 and July 2022 to cover personal expenses and trade in various crypto assets, according to the SEC. The SEC’s complaint accuses Morgenthau of concealing unauthorized withdrawals by falsifying African Gold’s bank account statements. Morgenthau allegedly provided the falsified documents to African Gold’s auditor and accountants, who were tasked with preparing the company’s SEC filings.

Furthermore, Morgenthau raised funds from Strategic Metals’ investors based on misrepresentations that the money would be utilized to fund the Strategic Metals SPAC series. However, Morgenthau misappropriated the money for personal uses, such as to conceal his misappropriation of African Gold’s funds, according to the SEC.

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, advisors, law, sec

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