- The previous chief economic officer for two SPACs pleaded responsible to wire fraud, the DOJ explained Wednesday.
- Cooper Morgenthau was charged with embezzling $5 million to trade crypto and meme shares.
- Morgenthau falsified lender statements to protect his losses to accountants and auditors, the DOJ mentioned.
The former head of two exclusive goal acquisition corporations pleaded guilty on Wednesday to expenses of wire fraud in the embezzling of $5 million, in accordance to a press launch from the Office of Justice’s office in the southern district of New York.
Cooper Morgenthau used the resources to trade cryptocurrencies and meme stocks and later falsified lender statements to cover his losses of practically the full sum. The plan lasted around one yr, starting up in June of 2021. Morgenthau was the chief fiscal officer of the two SPACs, African Gold and Strategic Metals Acquisition Corp according to an SEC grievance.
“Our criticism in opposition to Morgenthau demonstrates our dedication to keeping people accountable, especially when they request to get gain of community fascination in financial investment motor vehicles these types of as SPACs,” John T. Dugan, Affiliate Director for Enforcement in the SEC’s Boston Regional Business said in a assertion.
One of the SPACs experienced just finished its initial community giving, while the second blank-test firm was in the middle of a 2nd spherical of fundraising from investors with the goal of likely general public. Morgenthau made untrue statements to the SEC in regards to the very first SPAC’s IPO submitting, and also transferred money from the 2nd organization in get to protect some of his losses.
Wire fraud carries a maximum penalty of 20 many years in jail, and Morgenthau agreed to make restitution on $5,111,335. He is set to encounter sentencing in mid April.
- The previous chief economic officer for two SPACs pleaded responsible to wire fraud, the DOJ explained Wednesday.
- Cooper Morgenthau was charged with embezzling $5 million to trade crypto and meme shares.
- Morgenthau falsified lender statements to protect his losses to accountants and auditors, the DOJ mentioned.
The former head of two exclusive goal acquisition corporations pleaded guilty on Wednesday to expenses of wire fraud in the embezzling of $5 million, in accordance to a press launch from the Office of Justice’s office in the southern district of New York.
Cooper Morgenthau used the resources to trade cryptocurrencies and meme stocks and later falsified lender statements to cover his losses of practically the full sum. The plan lasted around one yr, starting up in June of 2021. Morgenthau was the chief fiscal officer of the two SPACs, African Gold and Strategic Metals Acquisition Corp according to an SEC grievance.
“Our criticism in opposition to Morgenthau demonstrates our dedication to keeping people accountable, especially when they request to get gain of community fascination in financial investment motor vehicles these types of as SPACs,” John T. Dugan, Affiliate Director for Enforcement in the SEC’s Boston Regional Business said in a assertion.
One of the SPACs experienced just finished its initial community giving, while the second blank-test firm was in the middle of a 2nd spherical of fundraising from investors with the goal of likely general public. Morgenthau made untrue statements to the SEC in regards to the very first SPAC’s IPO submitting, and also transferred money from the 2nd organization in get to protect some of his losses.
Wire fraud carries a maximum penalty of 20 many years in jail, and Morgenthau agreed to make restitution on $5,111,335. He is set to encounter sentencing in mid April.
