SEC Settles Charges Against SPAC African Gold Acquisition for Internal Control, Recordkeeping Failures

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)

African Gold Acquisition (NYSE:AGAC)
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