Defendant Name: Netcapital Inc.

Defendant Type: Public Company

Document Reference: LR-26607

Document Details

Legal Case Name SEC v. John Fanning, Coreen Kraysler, Martin Kay, Paul Riss, Cecilia Lenk, and Netcapital Inc.
Document Name SEC Charges Public Company and Officers in Alleged Fraudulent Scheme to Overstate Revenue
Document Date 11-Aug-2026
Document Format Civil Proceeding
Case Number 26-cv-13665
Federal District Court Massachusetts, District of Massachusetts
Allegation Type Issuer Reporting and Disclosure
Document Summary 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."

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."