Defendant Name:
Netcapital Inc.
Defendant Type:
Public Company
SIC Code:
9999
CUSIP:
64113L20
Document Reference:
comp26607
Document Details
Legal Case Name
SEC v. John Fanning, Coreen Kraysler, Martin Kay, Paul Riss, Cecilia Lenk, and Netcapital Inc.
Document Name
Complaint
Document Date
10-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
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."
Other Defendants in Action:
