NEW YORK, April 27 (Reuters) – A former chief monetary officer of a number of particular function acquisition corporations (SPACs) was sentenced to a few years in jail on Thursday for embezzling greater than $5 million from them, and shedding nearly all of it buying and selling meme shares and cryptocurrencies.
Cooper Morgenthau, 36, of Fernandina Seaside, Florida, pleaded responsible to at least one depend of wire fraud in January.
He was sentenced by U.S. District Decide Paul Engelmayer in Manhattan federal courtroom. Morgenthau additionally agreed to forfeit $5.11 million in cash earned from the scheme and pay an equal quantity in restitution. He beforehand settled associated U.S. Securities and Change Fee civil fees.
Authorities mentioned that between June 2021 and August 2022, Morgenthau stole greater than $1.2 million from African Gold Acquisition Corp (AGAC.N), hid the theft by falsifying its account statements, and spent or misplaced all of it in securities buying and selling.
To cowl his losses, Morgenthau then raised $4.7 million from traders in a SPAC generally known as Strategic Metals Acquisition Corp., solely to lose most of it by means of crypto buying and selling, the SEC mentioned.
African Gold, which is predicated in New York and was created to purchase a gold mining enterprise, had raised $414 million in a Feb. 2021 preliminary public providing.
It fired Morgenthau final August after he ran out of cash and distributors refused to work for the corporate, the SEC mentioned.
African Gold mentioned on the time it terminated Morgenthau after studying about his “improper withdrawals” and makes an attempt to hide them.
Federal prosecutors in Manhattan really useful a jail time period shorter than six years, citing Morgenthau’s acceptance of accountability.
Morgenthau’s legal professionals sought probation, saying it was the easiest way for him to earn cash to pay restitution.
Reporting by Luc Cohen in New York, enhancing by Deepa Babington
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