Cooper Morgenthau, the former chief financial officer of two companies, has been accused of embezzling nearly $5 million to invest them in the same coins like Dogecoin (DOGE) or Shiba Inu (SHIB) by example. Almost all of this sum was lost.
A CFO loses the money he embezzles on meme coins
It is an extraordinary financial fraud committed by Cooper Morgenthau while working for two companies called Special Purpose Acquisition Company (SPAC), i.e. companies already listed on the stock exchange, with the aim of merging with a company wishing to be listed. And for good reason, the ex-financial director is accused of having embezzled money, which he then almost entirely lost by investing it in the same coins.
The accused pleaded guiltyas reported by Damian Williams, the attorney for the Southern District of New York:
“Cooper Morgenthau, the former CFO of two SPACs, admitted he broke the trust he owed his public and private investors, stealing millions of dollars from them to trade [meme coins]. »
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Nearly $5 million embezzled
The facts took place between June 2021 and August 2022 and Cooper Morgenthau embezzled nearly $5 million. The companies involved are African Gold Acquisition Corp and Strategic Metals Acquisition Corp, from which he stole $1.2 million and $4.7 million respectively. The accused pleaded guilty and agreed to return just over $5.11 million.
While some meme coins such as Dogecoin (DOGE) or Shiba Inu (SHIB) experienced vertical ascents and high media coverage during the previous bull market, we can imagine that the former CFO got carried away by the greed.
In addition, Cooper Morgenthau has also fabricated fake bank statements and falsified public documents submitted to the Securities and Exchange Commission (SEC), in an attempt to cover up his misdeeds. While the conviction for electronic fraud must be pronounced on April 25, the accused faces up to 20 years in prison.
👉 Also in the news – Sam Bankman-Fried pleads not guilty – When will the trial take place?
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Sources: Reuters, US Department of Justice
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