Cooper Morgenthau, Wire Fraud, New York 2023

A Grimy Times investigation has uncovered a shocking tale of greed and deception on Wall Street, where the former chief financial officer of two special purpose acquisition companies has been sentenced to 36 months in prison for committing wire fraud.

According to sources, Cooper Morgenthau, 36, of Fernandina Beach, Florida, embezzled more than $5 million from African Gold Acquisition Corp. and Strategic Metals Acquisition Corp. between June 2021 and August 2022. This brazen scheme was orchestrated by Morgenthau, who 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.

Morgenthau’s actions were a clear abuse of trust, as he fabricated bank statements, made material misstatements in public filings with the Securities and Exchange Commission, and transferred funds between the two SPACs to cover up his misdeeds. His greed led him down a path of destruction, leaving a trail of financial devastation in his wake.

U.S. Attorney Damian Williams praised the outstanding work of the Federal Bureau of Investigation and thanked the SEC for its assistance and cooperation in this investigation. ‘With today’s sentencing of Cooper Morgenthau, SPAC promoters have been sent a message that fraud in the SPAC markets will be punished, and greed on Wall Street will be met with serious consequences,’ Williams said.

In addition to his prison term, Morgenthau was also ordered to forfeit $5,111,335 and to pay restitution of $5,111,335. This case serves as a stark reminder of the importance of accountability and the severe consequences of financial crimes.

The Office’s Securities and Commodities Fraud Task Force and Money Laundering and Transnational Criminal Enterprises Unit handled the case, with Assistant U.S. Attorneys Joshua A. Naftalis and Anden Chow in charge of the prosecution.

Morgenthau’s sentence marks a significant victory for those who have been victimized by his actions. As Grimy Times continues to investigate this story, it is clear that the truth will ultimately prevail, and those responsible will be held accountable for their crimes.

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