The former chief financial officer for a group of special purpose acquisition companies was sentenced to three years in prison for a scheme to embezzle more than $5 million to trade in crypto assets and meme stocks.
(Bloomberg) — The former chief financial officer for a group of special purpose acquisition companies was sentenced to three years in prison for a scheme to embezzle more than $5 million to trade in crypto assets and meme stocks.
Cooper Morgenthau, 36, of African Gold Acquisition Corp., admitted stealing the money from the SPACs for more than a year beginning in June 2021. He was sentenced in a hearing on Thursday, Manhattan US Attorney Damian Williams said in a statement.Â
Morgenthau wired more than $1.2 million of African Gold’s money to his personal accounts, then lost almost all the money trading in meme stocks, according to prosecutors. He fabricated bank statements to African Gold’s accountants and auditor to cover the thefts, they alleged.
In hopes of covering his losses, Morgenthau allegedly raised about $4.7 million for two other blank-check companies, Strategic Metals Acquisition Corp. I and Strategic Metals Acquisition Corp. II. He used some of that money to cover his losses at African Gold, and then withdrew that money again to trade crypto, the US Securities and Exchange Commission said in a related civil suit.
Morgenthau pleaded guilty in January to one count of wire fraud.
African Gold discovered the withdrawals in August 2022, fired Morgenthau, and disclosed his activity to the SEC, the regulator claimed.
The case is US v. Morgenthau, 23-cr-00002, US District Court, Southern District of New York (Manhattan).
–With assistance from Chris Dolmetsch.
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.