The case highlights how the rapid timelines and projection-heavy disclosures of SPAC structures can be exploited to mislead investors.
SPAC
The move is aligned with the SEC’s recent push to “make IPOs attractive gain.”
Rules target deals involving SPACs – or shell companies that raise funds through a listing with the intention of acquiring a private company and taking it public.
Banking veteran Bob Diamond sought to bring stablecoin operator to US stock market using blank-cheque company.
The SEC alleges that, from June 2021 through July 2022, Morgenthau embezzled money from African Gold and stole funds from another SPAC to pay for his personal expenses and to trade in crypto assets and other securities.