SEC Charges Netcapital With Fraud; CEO Responds to Allegations and Outlines Next Steps
The SEC has filed an enforcement action against Netcapital, alleging a fraudulent scheme to overstate revenue and raise over $25 million from investors. The complaint names several former executives and details improper revenue recognition practices. Netcapital's CEO, Todd Violette, stated the company will review the complaint and keep shareholders informed. The company's market cap has declined following the news.