SEC Charges Former SPAC CFO With Fraud, Alleges $5 Million Stolen

By Denny Jacob

The Securities and Exchange Commission on Tuesday said it issued fraud charges against Cooper Morgenthau after he allegedly stole more than $5 million from a special purpose acquisition company and from investors in two other SPACs that he incorporated.

The regulator alleged Mr. Morgenthau, the former chief financial officer of African Gold Acquisition Corp., embezzled money from the company. The SEC also alleged he stole funds from another SPAC series called Strategic Metals Acquisition Corp. I and II to pay for his personal expenses and to trade in crypto assets and other securities. Both allegations took place from June 2021 to July 2022, the regulator said.

The U.S. Attorney's Office for the Southern District of New York also issued criminal charges against Mr. Morgenthau in parallel action.

African Gold Acquisition in August ousted Mr. Morgenthau as CFO following an internal investigation over improper withdrawals from its operating bank accounts and attempts to conceal the withdrawals.

Write to Denny Jacob at denny.jacob@wsj.com

(END) Dow Jones Newswires

January 03, 2023 17:04 ET (22:04 GMT)

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