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Date: 04-27-2023
Case Style:
Case Number: 1:23-cr-00002
Judge: Paul A. Engelmayer
Court: United States District Court for the Southern District of New York (Manhattan County)
Plaintiff's Attorney: United States Attorney’s Office in New York City
Defendant's Attorney:
Description: New York City, New York criminal defense lawyer represented Defendant charged with committing wire fraud when he embezzled more than $5 million from the two SPACs.
Cooper Morgenthau, the former chief financial officer (“CFO”) of two special purpose acquisition companies (“SPACs”) — African Gold Acquisition Corp. (“AGAC”) and Strategic Metals Acquisition Corp. (“SMAC”), was accused for embezzling $5 million fro two SPACs.
Between approximately June 2021 and August 2022, MORGENTHAU, who was the CFO of AGAC and SMAC, embezzled more than $5 million from the two SPACs. AGAC had recently had its initial public offering (“IPO”), while SMAC was raising money from private investors in preparation for its anticipated IPO. MORGENTHAU used the embezzled funds to trade equities and options of so-called “meme stocks” and cryptocurrencies, losing almost all of the money that he stole. To conceal and facilitate his embezzlement from AGAC, MORGENTHAU fabricated bank statements, which he provided to AGAC’s accountant and auditor; made and caused to be made material misstatements in AGAC’s public filings with the Securities and Exchange Commission (“SEC”); and transferred some of SMAC’s funds to AGAC to cover up the funds he had misappropriated from AGAC.
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MORGENTHAU, 36, of Fernandina Beach, Florida, previously pled guilty to one count of wire fraud. In addition to his prison term, MORGENTHAU was also ordered to forfeit $5,111,335 and to pay restitution of $5,111,335.
Mr. Williams praised the outstanding work of the Federal Bureau of Investigation and thanked the SEC for its assistance and cooperation in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force and Money Laundering and Transnational Criminal Enterprises Unit. Assistant U.S. Attorneys Joshua A. Naftalis and Anden Chow are in charge of the prosecution.
18:1343.F FRAUD BY WIRE, RADIO, OR TELEVISION
Outcome: Imprisonment for total term of Thirty-Six (36) Months. Supervised release for a term of Three Years
Plaintiff's Experts:
Defendant's Experts:
Comments: