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

I cannot thank you enough for your efforts. You have proven to be a valuable resource.

Jim T.

LATEST NEWS AND ARTICLES

February 19, 2026
Wall Street Journal Analysis Questions Investor Gains Following DuPont's Decade-Long Breakup

A Wall Street Journal analysis has raised questions about investor returns following DuPont’s multi-year corporate restructuring, which divided the historic conglomerate into multiple independent companies.

February 18, 2026
American Portfolios Ordered to Pay $4.6 Million in Restitution Over Cash Sweep Program Disclosures

The Financial Industry Regulatory Authority (FINRA) has ordered American Portfolios Financial Services to return $4.6 million to customers and pay monetary sanctions after determining that the firm overcharged investors and failed to properly disclose how it generated revenue through a cash sweep program.

February 17, 2026
FINRA Fines Kingswood Capital Partners $150,000 for Supervisory Failures in GWG L Bond Sales

The Financial Industry Regulatory Authority (FINRA) censured and fined San Diego–based broker-dealer Kingswood Capital Partners $150,000 after finding supervisory failures tied to sales of high-risk GWG L bonds.