- A 36-year-old former CFO has been sentenced to three years in prison after embezzling more than $5 million from the companies under his control
- Cooper Morgenthau was CFO for several special purpose acquisition companies and used their funds to trade crypto
- Morgenthau tried to cover up for his losses but was arrested after his misdemeanors were discovered
A 36-year-old former CFO of several special purpose acquisition companies (SPACs) has been sentenced to three years in prison after embezzling more than $5 million from them. Cooper Morgenthau, from Fernandina Beach, Florida, pleaded guilty to one count of wire fraud in January, after losing almost all of the stolen money trading meme stocks and cryptocurrencies. Morgenthau could have been looking at 20 years in prison but was saved by his guilty plea, although he will have to pay back the money he stole and the same again in restitution.
Morgenthau Lost $5 Million Trading Crypto and Meme Stocks
From around June 2021 to August 2022, Morgenthau embezzled over $5 million from two SPACs, abusing his position as CFO. One SPAC had recently gone public while the second was raising funds from private investors in anticipation of its IPO.
Morgenthau used the stolen money to trade in meme stocks and cryptocurrencies, resulting in almost complete losses. He tried to hide his embezzlement by creating fake bank statements, making false statements in public filings with the SEC and transferring funds from one SPAC to the other to cover up the thefts.
Saved by Guilty Plea
Morgenthau pleaded guilty to one count of wire fraud in January and U.S. District Judge Paul Engelmayer passed down a sentence far less than the 20-year maximum due to his guilty plea. The ruling also includes Morgenthau forfeiting $5.11 million in illicit earnings and paying an equivalent amount in restitution having previously settled related civil charges filed by the U.S. Securities and Exchange Commission.
