US SEC accuses former top manager of African Gold Acquisition of $5 million fraud

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​​The US SEC has charged the former CFO of African Gold Acquisition Corp. in fraud of $5 million and theft of the company's budget funds, which he invested in digital assets.

According to the complaint filed by the SEC in the court of SouthernDistrict of New York, between June 2021 and July 2022, Cooper J. Morgenthau stole $1.2 million from his employer. He transferred money from the accounts of the gold mining company African Gold Acquisition to his personal bank account and brokerage account. The attacker used the stolen funds to purchase meme cryptocurrencies and other digital assets.

Regulator says Morgenthau fakedbank statements, inflating the company's available balance so that its management does not discover the shortfall. Thus, Morgenthau managed to deceive management and auditors for more than a year. Morgenthau also raised money from investors to launch other special purpose acquisition companies (SPACs), according to the SEC. He managed to raise $4.7 million, part of which he used to return money stolen from his employer.

“The lawsuit against Morgenthau demonstrates oura willingness to hold individuals accountable when they attempt to take advantage of public interest in investment vehicles such as SPACs. This case should serve as a lesson for those who commit misconduct in the SPAC market,” said John T. Dugan, deputy director of the SEC’s Division of Enforcement in Boston.

The US Attorney's Office in New York has filedcriminal case against Morgenthau. He agreed to an injunction that would prevent him from holding senior positions at public companies.

Let us recall that a few days ago the American regulator accused the organizers of the CoinDeal cryptocurrency scheme of fraud and conducting an unregistered ICO.