SEC Settles Charges Against SPAC African Gold Acquisition for Internal Control, Recordkeeping Failures
February 22 2023 - 12:30PM
Dow Jones News
By Denny Jacob
The Securities and Exchange Commission said Wednesday it settled
charges against African Gold Acquisition Corp. for internal
controls, reporting and recordkeeping violations that enabled its
former chief financial officer to misappropriate about $1.2 million
from the company's bank account.
The SEC said the special purpose acquisition company made
materially false filings with the agency and maintained inaccurate
books and records. African Gold agreed to a cease-and-desist order
and to pay a $103,591 civil monetary penalty without admitting or
denying the SEC's findings.
African Gold's only liquid asset was the money held in its
operating bank account but despite this risk gave former CFO Cooper
Morgenthau control over nearly all of the account and the financial
reporting process with little to no oversight, the SEC's order
alleged.
African Gold ousted Mr. Morgenthau in August following an
internal investigation over improper withdrawals from its operating
bank accounts and attempts to conceal the withdrawals.
The SEC issued fraud charges in January against Mr. Morgenthau
after he allegedly stole more than $5 million from African Gold and
from investors in two other SPACs that he incorporated.
Write to Denny Jacob at denny.jacob@wsj.com
(END) Dow Jones Newswires
February 22, 2023 12:15 ET (17:15 GMT)
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