Defendant Name: Netcapital Inc.

Defendant Type: Public Company
SIC Code: 9999
CUSIP: 64113L20

Initial Case Details

Legal Case Name SEC v. John Fanning, Coreen Kraysler, Martin Kay, Paul Riss, Cecilia Lenk, and Netcapital Inc.
First Document Date 10-Aug-2026
Initial Filing Format Civil Proceeding
Case Number 26-cv-13665
Allegation Type Issuer Reporting and Disclosure
Federal District Court Massachusetts, District of Massachusetts

Violations Alleged

Exchange Act
• Sec 10(b) + Rule 10b-5
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
• Rule 13a-13
Securities Act
• Sec 17(a)(1)
• Sec 17(a)(2)
• Sec 17(a)(3)
• Sec 17(a) (Not specified)
Additionally, John Fanning is alleged to have aided and abetted Netcapital Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
Paul Riss is alleged to have aided and abetted Netcapital Inc.'s violation of Sec 10(b) + Rule 10b-5 of the Exchange Act.
John Fanning is alleged to have aided and abetted Netcapital Inc.'s violation of Sec 17(a)(2) of the Securities Act.
Paul Riss is alleged to have aided and abetted Netcapital Inc.'s violation of Sec 17(a)(2) of the Securities Act.

Resolutions

First Resolution Date

Related Documents:

comp26607 10-Aug-2026 Complaint
Complaint
The Commission stated: "This action concerns a fraudulent scheme to overstate the revenue of Netcapital, a Massachusetts-based company with publicly traded common stock. From approximately October 2021 through January 2024 (the "Relevant Period"), Netcapital improperly recorded in its books and records (or "recognized") nearly $14 million in revenue from consulting agreements between Netcapital and supposed customers of Netcapital's services that were, in fact, controlled by Fanning. The consulting agreements, some of which were forged, were shams that produced no real revenue for Netcapital."
LR-26607 11-Aug-2026 Litigation Release
SEC Charges Public Company and Officers in Alleged Fraudulent Scheme to Overstate Revenue
On August 10, 2026, the SEC stated that: "[It] fi led charges against the public company Netcapital Inc., and five affiliated individuals, including current and former officers and directors, for allegedly participating in a fraudulent scheme to overstate Netcapital’s revenue while raising more than $25 million from investors."

Other Defendants in Action:

Cecilia Lenk
John Fanning
Coreen Kraysler
Martin Kay
Paul Riss