Tr?id=566623520170033&ev=PageView&noscript=1

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

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

That is just fantastic! Thank you very much!

Julie N.

LATEST NEWS AND ARTICLES

1774034084 Law
March 20, 2026
McKinsey Forecasts Sweeping Changes for Wealth Management Over the Next Decade

The U.S.

1773930497 Law
March 19, 2026
Stifel Faces Proposed ERISA Class Action Over 401(k) Fund Performance

According to ThinkAdvisor, Stifel Financial now faces a proposed class action lawsuit that accuses the firm of mismanaging its profit sharing 401(k) retirement plan in violation of the Employee Retirement Income Security Act (ERISA).

1773851287 Law
March 18, 2026
LPL and Ameriprise Notify Clients of Cybersecurity Incidents Involving Account Access

LPL Financial and Ameriprise Financial Services recently notified certain clients about separate cybersecurity incidents that exposed private information and, in one case, led to unauthorized trading activity.