{"success":true,"data":{"pressRelease":{"id":"169674","rtpr_id":"nBw8tF0rYa-20261014","ticker":"NCPL","exchange":"NASDAQ","all_tickers":["NCPL"],"title":"Securities Fraud Investigation Into Netcapital Inc. (NCPL) Announced – Shareholders Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz","author":"Business Wire","published_at":"2026-10-14T23:42:00.092Z","article_body":"Securities Fraud Investigation Into Netcapital Inc. (NCPL) Announced –\nShareholders Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz\n\nThe Law Offices of Frank R. Cruz\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com%2F&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=The+Law+Offices+of+Frank+R.+Cruz&index=1&md5=1b091601feaead81d5d5023aa82618bb)\nannounces an investigation of Netcapital Inc. (“Netcapital” or the\n“Company”) (NASDAQ: NCPL\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ffinance.yahoo.com%2Fquote%2Fncpl&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=NCPL&index=2&md5=8f5de400a5fc5a514a1ed7a60ff3ee3b)\n) on behalf of investors concerning the Company’s possible violations of\nfederal securities laws.\n\nIF YOU ARE AN INVESTOR WHO LOST MONEY ON NETCAPITAL INC. (NCPL), CLICK HERE\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com%2Fcases%2Fnetcapital-inc%2F&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=HERE&index=3&md5=4bde87fe60769ec18d457aa9604db10b)\nTO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.\n\nWhat Is the Investigation About?\n\nOn August 10, 2026, the SEC filed a complaint against Netcapital and certain\nsenior executives alleging, among other things, that Netcapital was involved\nin a fraudulent scheme to overstate the revenue of Netcapital. Specifically,\nfrom approximately October 2021 through January 2024, Netcapital improperly\nrecorded nearly $14 million in revenue from sham consulting agreements which\nproduced no real revenue for Netcapital. The recognition of this revenue\ninflated Netcapital’s total revenue by approximately 345%. During this\nperiod, investors in Netcapital’s public and private securities offerings\ninvested over $25.6 million.\n\nOn this news, Netcapital stock fell $0.05 or 12.82%, to close at $0.35 on\nAugust 11, 2026, thereby injuring investors.\n\nThen on August 17, 2026, the Netcapital disclosed that its independent\nregistered public accounting firm, Fruci & Associates II, PLLC, had\nresigned.\n\nOn this news, Netcapital stock fell $0.09 or 28.62%, to close at $0.23 on\nAugust 18, 2026, thereby further injuring investors.\n\nFinally on September 3, 2026, after market close, Netcapital disclosed that on\nAvi Liss had resigned as a member of the Board of Directors, and from all\ncommittees of the Board, including the Audit Committee, effective immediately.\nIn his resignation letter, Liss stated that he was resigning “in light of\nthe serious allegations recently asserted against the Company and certain\ncurrent and former officers, directors, and other individuals” in the SEC\nComplaint.\n\nOn this news, Netcapital stock fell $0.05 per share, or 8.15%, to close at\n$0.58 per share on September 4, 2026. The following trading day, Netcapital\nstock fell a further $0.08 per share, or 13.15%, to close at $0.50 per share\non September 8, 2026, thereby further injuring investors.\n\nContact Us to Participate or Learn More:\n\nIf you purchased Netcapital Inc. securities, have information or would like to\nlearn more about these claims, or have any questions concerning this\nannouncement or your rights or interests with respect to these matters, please\ncontact us:\n\nThe Law Offices of Frank R. Cruz\n2121 Avenue of the Stars, Suite 800\nCentury City, California 90067\nCall us at: 310-914-5007\nEmail us at: info@frankcruzlaw.com (mailto:info@frankcruzlaw.com) \nVisit our website at: www.frankcruzlaw.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.frankcruzlaw.com&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=www.frankcruzlaw.com&index=4&md5=395942af7570ec4bfec08688543d1125)\n.\nFollow us for updates on Twitter at twitter.com/FRC_LAW\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FFRC_LAW&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=twitter.com%2FFRC_LAW&index=5&md5=5a9e8e99343100f7d7e6780da30bb89f)\n.\n\nIf you inquire by email, please include your mailing address, telephone\nnumber, and number of shares purchased.\n\nThis press release may be considered Attorney Advertising in some\njurisdictions under the applicable law and ethical rules.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261014232280/en/\n(https://www.businesswire.com/news/home/20261014232280/en/)\n\nThe Law Offices of Frank R. Cruz, Los Angeles\nFrank R. Cruz\n310-914-5007\nfcruz@frankcruzlaw.com (mailto:fcruz@frankcruzlaw.com) \nwww.frankcruzlaw.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=www.frankcruzlaw.com&index=6&md5=e11de475f4e5ae342dc7cf8d6f4b2673)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw8tF0rYa-20261014","title":"Securities Fraud Investigation Into Netcapital Inc. (NCPL) Announced – Shareholders Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz","author":"Business Wire","ticker":"NCPL","created":"2026-10-14T23:42:00.092Z","tickers":["NCPL"],"exchange":"NASDAQ","article_body":"Securities Fraud Investigation Into Netcapital Inc. (NCPL) Announced –\nShareholders Who Lost Money Urged to Contact The Law Offices of Frank R. Cruz\n\nThe Law Offices of Frank R. Cruz\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com%2F&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=The+Law+Offices+of+Frank+R.+Cruz&index=1&md5=1b091601feaead81d5d5023aa82618bb)\nannounces an investigation of Netcapital Inc. (“Netcapital” or the\n“Company”) (NASDAQ: NCPL\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ffinance.yahoo.com%2Fquote%2Fncpl&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=NCPL&index=2&md5=8f5de400a5fc5a514a1ed7a60ff3ee3b)\n) on behalf of investors concerning the Company’s possible violations of\nfederal securities laws.\n\nIF YOU ARE AN INVESTOR WHO LOST MONEY ON NETCAPITAL INC. (NCPL), CLICK HERE\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com%2Fcases%2Fnetcapital-inc%2F&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=HERE&index=3&md5=4bde87fe60769ec18d457aa9604db10b)\nTO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.\n\nWhat Is the Investigation About?\n\nOn August 10, 2026, the SEC filed a complaint against Netcapital and certain\nsenior executives alleging, among other things, that Netcapital was involved\nin a fraudulent scheme to overstate the revenue of Netcapital. Specifically,\nfrom approximately October 2021 through January 2024, Netcapital improperly\nrecorded nearly $14 million in revenue from sham consulting agreements which\nproduced no real revenue for Netcapital. The recognition of this revenue\ninflated Netcapital’s total revenue by approximately 345%. During this\nperiod, investors in Netcapital’s public and private securities offerings\ninvested over $25.6 million.\n\nOn this news, Netcapital stock fell $0.05 or 12.82%, to close at $0.35 on\nAugust 11, 2026, thereby injuring investors.\n\nThen on August 17, 2026, the Netcapital disclosed that its independent\nregistered public accounting firm, Fruci & Associates II, PLLC, had\nresigned.\n\nOn this news, Netcapital stock fell $0.09 or 28.62%, to close at $0.23 on\nAugust 18, 2026, thereby further injuring investors.\n\nFinally on September 3, 2026, after market close, Netcapital disclosed that on\nAvi Liss had resigned as a member of the Board of Directors, and from all\ncommittees of the Board, including the Audit Committee, effective immediately.\nIn his resignation letter, Liss stated that he was resigning “in light of\nthe serious allegations recently asserted against the Company and certain\ncurrent and former officers, directors, and other individuals” in the SEC\nComplaint.\n\nOn this news, Netcapital stock fell $0.05 per share, or 8.15%, to close at\n$0.58 per share on September 4, 2026. The following trading day, Netcapital\nstock fell a further $0.08 per share, or 13.15%, to close at $0.50 per share\non September 8, 2026, thereby further injuring investors.\n\nContact Us to Participate or Learn More:\n\nIf you purchased Netcapital Inc. securities, have information or would like to\nlearn more about these claims, or have any questions concerning this\nannouncement or your rights or interests with respect to these matters, please\ncontact us:\n\nThe Law Offices of Frank R. Cruz\n2121 Avenue of the Stars, Suite 800\nCentury City, California 90067\nCall us at: 310-914-5007\nEmail us at: info@frankcruzlaw.com (mailto:info@frankcruzlaw.com) \nVisit our website at: www.frankcruzlaw.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.frankcruzlaw.com&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=www.frankcruzlaw.com&index=4&md5=395942af7570ec4bfec08688543d1125)\n.\nFollow us for updates on Twitter at twitter.com/FRC_LAW\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Ftwitter.com%2FFRC_LAW&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=twitter.com%2FFRC_LAW&index=5&md5=5a9e8e99343100f7d7e6780da30bb89f)\n.\n\nIf you inquire by email, please include your mailing address, telephone\nnumber, and number of shares purchased.\n\nThis press release may be considered Attorney Advertising in some\njurisdictions under the applicable law and ethical rules.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20261014232280/en/\n(https://www.businesswire.com/news/home/20261014232280/en/)\n\nThe Law Offices of Frank R. Cruz, Los Angeles\nFrank R. Cruz\n310-914-5007\nfcruz@frankcruzlaw.com (mailto:fcruz@frankcruzlaw.com) \nwww.frankcruzlaw.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.frankcruzlaw.com&esheet=54622482&newsitemid=20261014232280&lan=en-US&anchor=www.frankcruzlaw.com&index=6&md5=e11de475f4e5ae342dc7cf8d6f4b2673)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-10-14T23:42:00.143293341Z","server_sent_at_ms":1792021320143},"received_at":"2026-10-14T23:42:00.194Z","source_url":"https://www.businesswire.com/news/home/20261014232280/en/"},"analysis":{"id":"157902","press_release_id":"169674","analysis_json":{"industry":{"label":"Financial Services & Capital Markets","sector":"Financials"},"redFlags":["SEC complaint alleges ~$14M of fabricated revenue inflating reported revenue by ~345%","independent auditor Fruci & Associates II resigned","audit committee member Avi Liss resigned citing serious allegations","stock trading at sub-$1 levels with repeated double-digit percentage drops"],"eventType":"legal_litigation","narrative":"The Law Offices of Frank R. Cruz announced an investigation of Netcapital Inc. (NCPL) into possible federal securities law violations; the release is a shareholder solicitation, not an issuer disclosure.\n\nIt recaps the SEC's August 10, 2026 complaint alleging Netcapital improperly recorded nearly $14 million in sham revenue, inflating total revenue by roughly 345%, with investors putting in over $25.6 million during the period.\n\nIt also recaps the resignation of auditor Fruci & Associates II and director Avi Liss, which preceded sharp stock declines in August and September 2026. No new legal development is announced in this release.","sentiment":"neutral","agentHooks":{"shouldPost":false,"suggestedAngle":"Plaintiff-firm solicitation recapping previously disclosed SEC fraud allegations -- suppress; monitor issuer filings directly."},"keyFigures":{"customDimensions":{"aug_11_drop":"-12.82%","aug_18_drop":"-28.62%","improper_revenue":"$14 million","investor_proceeds":"$25.6 million","revenue_inflation_pct":"345%"}},"namedEntities":{"people":[{"name":"Frank R. Cruz","role":"plaintiff attorney"},{"name":"Avi Liss","role":"former Netcapital board member (resigned)"}],"products":[],"companies":[{"name":"Netcapital Inc.","ticker":"NCPL","relationship":"subject of investigation"},{"name":"The Law Offices of Frank R. Cruz","relationship":"plaintiff law firm"},{"name":"Fruci & Associates II, PLLC","relationship":"former auditor (resigned)"}],"dollarAmounts":[{"amount":"$14 million","context":"improperly recorded revenue from sham consulting agreements"},{"amount":"$25.6 million","context":"amounts invested by investors in public and private offerings during the period"}]},"materialImpact":{"score":1,"reasoning":"Plaintiff law-firm solicitation by The Law Offices of Frank R. Capital-style investor rights firm; no new issuer disclosure, no certified class or settlement. The underlying SEC complaint (Aug 2026) and auditor resignation are already-disclosed events being recapped to solicit clients."},"tickerRelevance":{"others":[],"primary":"NCPL"},"globalImportance":15,"audienceRelevance":10,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"micro-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false,"underlyingSeverity":"high (SEC fraud complaint) but already-disclosed"}},"event_type":"legal_litigation","event_type_secondary":null,"sentiment":"neutral","material_impact_score":1,"narrative":"The Law Offices of Frank R. Cruz announced an investigation of Netcapital Inc. (NCPL) into possible federal securities law violations; the release is a shareholder solicitation, not an issuer disclosure.\n\nIt recaps the SEC's August 10, 2026 complaint alleging Netcapital improperly recorded nearly $14 million in sham revenue, inflating total revenue by roughly 345%, with investors putting in over $25.6 million during the period.\n\nIt also recaps the resignation of auditor Fruci & Associates II and director Avi Liss, which preceded sharp stock declines in August and September 2026. No new legal development is announced in this release.","key_figures":{"customDimensions":{"aug_11_drop":"-12.82%","aug_18_drop":"-28.62%","improper_revenue":"$14 million","investor_proceeds":"$25.6 million","revenue_inflation_pct":"345%"}},"named_entities":{"people":[{"name":"Frank R. Cruz","role":"plaintiff attorney"},{"name":"Avi Liss","role":"former Netcapital board member (resigned)"}],"products":[],"companies":[{"name":"Netcapital Inc.","ticker":"NCPL","relationship":"subject of investigation"},{"name":"The Law Offices of Frank R. Cruz","relationship":"plaintiff law firm"},{"name":"Fruci & Associates II, PLLC","relationship":"former auditor (resigned)"}],"dollarAmounts":[{"amount":"$14 million","context":"improperly recorded revenue from sham consulting agreements"},{"amount":"$25.6 million","context":"amounts invested by investors in public and private offerings during the period"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-14T23:42:05.597Z","global_importance":15,"audience_relevance":10,"importance_components":{"tickerTier":"micro-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false,"underlyingSeverity":"high (SEC fraud complaint) but already-disclosed"}},"durationMs":5391,"modelName":"glm-5.3-flashx"}}