Coreen Kraysler Of Netcapital Involved In SEC Civil Action

Coreen Sarah Kraysler (CRD: 2699785), a securities broker based in Boston, Massachusetts, faces Securities and Exchange Commission (SEC) allegations involving Netcapital Inc. Investors may have suffered losses related to the alleged conduct. Kraysler worked for Livingston Securities LLC, from October 4, 2018, to December 22, 2022, and has been registered with Netcapital Securities Inc. since November 27, 2024, according to Financial Industry Regulatory Authority (FINRA) BrokerCheck. Here is what the SEC alleges and where the case stands.

SEC Files Civil Action Against Coreen Kraysler

On August 10, 2026, the SEC filed a civil action against Coreen Kraysler and other defendants in the United States District Court for the District of Massachusetts (Case No. 1:26-cv-13665). The SEC alleges that Kraysler's conduct could have led Netcapital Inc. to overstate its revenue. For this reason, the agency is seeking monetary penalties, among other remedies.

From approximately October 2021 through January 2024, Netcapital allegedly recorded nearly $14 million in consulting revenue from agreements with businesses the SEC says were controlled by John Fanning. The SEC alleges that the agreements did not generate genuine revenue and that some were falsified. According to the agency, recording this revenue caused Netcapital to overstate its reported revenue by approximately 345 percent during that period.

The SEC says the inflated revenue figures appeared in Netcapital reports filed with the agency and in materials used for securities offerings. Investors put more than $25.6 million into Netcapital’s public and private securities offerings while the alleged overstatement was occurring. The SEC alleges that the funds helped Netcapital keep operating and supported payments to Kraysler and others.

Consulting Agreements And Crowdfunding Offerings In The SEC Case Against Coreen Kraysler

According to the SEC, Netcapital Advisors entered into consulting agreements with at least 11 startups controlled by Fanning. The SEC alleges that the backdated agreements called for each startup to pay between $1 million and $2 million for services tied to planned Regulation Crowdfunding offerings.

The SEC alleges that these startups had little or no meaningful revenue or assets and could pay Netcapital Advisors only with equity interests. Other startups not allegedly involved in the scheme paid Netcapital Advisors an average of about $50,000 for similar services, in cash or a combination of cash and equity. The agency also alleges that some documents used in the crowdfunding offerings were falsified.

Coreen Kraysler’s Alleged Role In Netcapital’s Revenue Reporting

The SEC’s case seeks sanctions against Kraysler for her alleged role in Netcapital’s recognition of nearly $14 million in disputed consulting revenue. Specifically, the SEC is seeking disgorgement, an injunction, a bar, civil penalties, and a prohibition against Kraysler serving as an officer or director.

Also, the SEC says this revenue came from agreements with purported clients controlled by Fanning, and that some agreements were falsified and did not generate genuine revenue. The agency alleges that the resulting figures appeared in Netcapital’s filings and securities offering materials provided to investors.

Potential Recovery Options Involving Coreen Kraysler

Investors who believe they suffered losses because of Coreen Kraysler can contact Soreide Law Group online or at (888) 760-6552 to discuss possible recovery with a securities attorney. Soreide Law Group has recovered losses for investors throughout the United States and works on a contingency fee basis, advancing all costs. Kraysler and the brokerage firms where she worked deny accusations of sales practice violations.