Home / Business and Economy / SEC Alleges $14M Revenue Fraud by Netcapital
SEC Alleges $14M Revenue Fraud by Netcapital
11 Aug
Summary
- SEC charged Netcapital with securities fraud on Monday.
- The company allegedly overstated revenue by nearly $14 million.
- The SEC cited sham consulting agreements as the basis for fraud.
The U.S. Securities and Exchange Commission has filed a civil complaint against Netcapital, alleging securities fraud. This action, taken on Monday, stems from the fintech company's supposed scheme to inflate its revenue figures. The SEC claims Netcapital improperly recognized approximately $14 million in revenue.
These revenue claims were reportedly derived from consulting agreements with John Fanning, who was instrumental in creating the Netcapital brand. The SEC asserts that these agreements, some of which were allegedly forged, were fictitious and did not generate any genuine income for the Boston-based company.
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