SEC files lawsuit against software development company C-Hear
The Securities and Exchange Commission (SEC) has filed a lawsuit against C-Hear, Inc and Adena Harmon.
The SEC’s complaint, submitted on February 19, 2026, at the Texas Northern District Court, alleges that between January 2019 and October 2023, Adena Harmon, acting as the Chief Executive Officer and/or Chairman of software development company C-Hear, and other C-Hear representatives solicited multiple investors to invest in C-Hear.
During these solicitations, Harmon and the other C-Hear representatives made a series of materially misleading statements and omissions, including omitting Harmon’s criminal background and falsely claiming that C- Hear’s primary software product was in trials with third parties and that the federal government had tried and was unable to hack into one of C-Hear’s products.
When investors invested, Harmon directed certain investors to transfer funds to bank accounts that she represented were C-Hear bank accounts. In reality, Harmon opened these bank accounts for her own use without notifying the company. Harmon misappropriated investor funds from the accounts, using the money to pay for personal expenses like luxury shopping trips and to pay off a criminal restitution order.
Separately, Harmon solicited at least one C-Hear investor to invest in another company that Harmon controlled, Elite Performance Data Labs, LLC.
Harmon made misrepresentations to investors about Elite Performance’s business dealings, falsely claiming that an acquisition by the Dallas Cowboys was imminent and that the Cowboys had placed a multimillion-dollar order for Elite Performance’s products. Harmon misappropriated almost all of the Elite Performance investor funds, using the money to pay her personal expenses, to pay for another business venture, and to pay C-Hear expenses.
The SEC accuses the defendants of violations of the antifraud provisions of federal securities laws. The regulator is seeking: (i) permanent injunctive relief; (ii) disgorgement of ill-gotten gains from Harmon, plus prejudgment interest; and (iii) civil penalties.
