Ex-CFO Sentenced 3 Years in Prison for Stealing from SPACs to Trade Meme Stocks, Crypto

The United States Department of Justice notified that the former chief financial officer of a special purpose acquisition company was sentenced to three years in prison after embezzling $5 million.According to the official, US District Judge Paul A.

The authorities said his actions led to “material misstatements” in AGAC’s public filings with the Securities and Exchange Commission . The 36-year-old Florida resident raised another $4.7 million from private investors in a SPAC separate from African Gold. He fraudulently claimed that the money would be used to launch yet another SPAC. The new capital injunction was then used to cover his losses at African Gold as well as to continue his crypto and meme-stocks trading.“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.

The former exec previously pled guilty to one count of wire fraud. In addition to his prison term, Morgenthau was also ordered to forfeit over $5.1 million and to pay restitution of the same amount.

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Ex-CFO that stole $5M to trade crypto and ‘meme stocks' gets 3 years prisonCooper Morgenthau, the former CFO of African Gold Acquisition Corp has been sentenced to 3 years in prison after embezzling $5 million to trade equities and options on crypto and meme stocks. Following the losses, he then provided falsified documents to accountants and an auditor at African Gold ahead of its public filing with the SEC, which led to “material misstatements” in the company’s public financial records.
Source: Cointelegraph - 🏆 562. / 51 Read more »