April 7, 2026
ChapmanAlbin is investigating Adena Harmon, the former Chief Executive Officer and Chairman of C-Hear, Inc., a software development company that was based in Dallas, Texas. In February 2026, the Securities and Exchange Commission filed a civil complaint in federal court in the Northern District of Texas alleging that Harmon made a series of materially false and misleading statements to investors in C-Hear and in a second company she controlled, Elite Performance Data Labs, LLC — including concealing her prior criminal convictions, falsely claiming the company’s technology was in testing trials with major customers and the federal government, and fabricating negotiations with the Dallas Cowboys. The SEC further alleges that Harmon misappropriated approximately $641,000 from C-Hear investor funds and nearly all of the $405,000 raised from an Elite Performance investor, using the money for personal expenses including luxury shopping, a rental home, and to satisfy an outstanding criminal restitution order. This page is based on public records including the SEC’s civil complaint, Case No. 3:26-cv-00547, filed February 19, 2026. If you invested in C-Hear, Inc. or Elite Performance Data Labs and have concerns about what happened to your money, this page explains what the public record shows and what options may be available to you.
Name: Adena Harmon
Role: Co-founder, CEO (approximately February 2019 – July 2022), and Chairman of the Board (July 2022 – January 2023) of C-Hear, Inc.; founder and managing member of Elite Performance Data Labs, LLC
Companies involved: C-Hear, Inc. (Dallas/Austin, TX); Elite Performance Data Labs, LLC (Fort Worth, TX — now defunct)
SEC filing: SEC v. C-Hear, Inc. and Adena Harmon — Civil Action No. 3:26-cv-00547 (N.D. Tex.)
Primary concern: Alleged misrepresentation and omission in soliciting investors; alleged misappropriation of investor funds
Instruments mentioned in public records: C-Hear stock (private); convertible loan agreement; Elite Performance LLC membership interests; promissory note
Action filed: February 19, 2026
Adena Harmon co-founded C-Hear, Inc. in September 2015. According to the SEC complaint, she was appointed CEO after the company received its first patent in early 2019 and served in that role until July 2022, after which she remained as Chairman of the Board until January 2023. During that period, Harmon was also the founder and sole controlling member of Elite Performance Data Labs, LLC, a now-defunct Texas company she represented as a sports technology startup. Harmon does not appear in FINRA BrokerCheck as a registered broker or investment adviser, and no FINRA CRD number is available for her. This case falls under the SEC’s civil enforcement authority over securities fraud rather than FINRA’s regulatory jurisdiction over registered broker-dealers.
The SEC filed a civil complaint on February 19, 2026 in the U.S. District Court for the Northern District of Texas naming both Adena Harmon and C-Hear, Inc. as defendants. The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, as well as Section 17(a) of the Securities Act of 1933. The SEC is seeking a permanent injunction barring both defendants from future securities violations, an injunction barring Harmon from participating in the offer or sale of any security (other than purchases for her own personal account), disgorgement of all ill-gotten gains from Harmon plus prejudgment interest, and civil monetary penalties against both defendants. The case is pending as of the date of this post — no final judgment has been entered.
According to the SEC complaint, investors in C-Hear were given marketing materials describing Harmon’s background in social media and nonprofit work as a selling point. What those materials did not disclose, the complaint alleges, was that Harmon had previously been convicted of multiple financial crimes — including theft by check and forging securities — had served prison time on multiple occasions, and had an outstanding criminal restitution order for money she still owed to two churches. The SEC alleges this omission was material, meaning it was the kind of information investors would want to know before deciding whether to trust someone with their money.
On top of the omissions, the complaint describes a series of alleged false statements. C-Hear’s marketing claimed its core technology — a data file called CHIF — was in active trials with companies in cybersecurity, oil and gas, and other industries, and that the federal government had tried and failed to hack it. According to the complaint, none of this was true: there were no trials, and the federal government claims were fabricated. Importantly, the complaint alleges these false claims continued even after C-Hear’s own marketing consultant flagged them internally in May 2022.
The complaint further alleges that Harmon secretly opened two bank accounts in C-Hear’s name without telling the board, directed investors to deposit their funds into those accounts rather than C-Hear’s actual corporate accounts, and then used the money for personal spending. One investor was directed to deposit nearly $700,000. When that investor later sought repayment on a $200,000 convertible loan, Harmon allegedly provided a series of excuses — including claiming she could not visit the bank because she was undergoing cancer treatment — without ever repaying the funds.
The Elite Performance story follows a similar pattern, the complaint alleges. Harmon told at least one C-Hear investor that Elite Performance had developed technology for professional sports use and that a multi-million-dollar deal with the Dallas Cowboys was nearly complete. In reality, according to the complaint, the technology did not exist, and the Cowboys had no interest in the company after a single meeting. The investor ultimately put in $405,000 across multiple transactions; the complaint alleges Harmon kept nearly all of it.
The conduct described in the SEC complaint represents some of the most serious forms of investment harm: investors were allegedly given a false picture of both the opportunity and the person asking for their trust, and their money was then allegedly redirected for personal use rather than the stated business purpose.
Investors who purchased C-Hear stock, participated in the convertible loan agreement, or invested in Elite Performance membership interests or the promissory note may have grounds to pursue recovery through civil litigation. Misrepresentation and omission — making false statements or hiding material facts when soliciting investors — is at the core of what the SEC complaint describes. Fraud and misappropriation is the other central allegation: funds investors believed were going to a company were allegedly diverted to personal accounts and personal use.
The instruments at issue — including private placements (C-Hear stock and Elite Performance LLC interests sold in private transactions) and promissory notes (the convertible loan and the Elite Performance note) — carry inherent risks that investors may not have been in a position to fully evaluate, particularly when the person soliciting the investment is alleged to have concealed a criminal history and fabricated third-party interest in the product.
ChapmanAlbin works on contingency, which means there is no cost to you unless we recover money on your behalf. If you invested in C-Hear or Elite Performance and have concerns about what happened to your money, the first step is a free, no-obligation consultation with one of our attorneys.
The SEC’s February 2026 civil complaint alleges that Harmon made materially false and misleading statements to investors in C-Hear, Inc. and Elite Performance Data Labs, LLC, including concealing her prior criminal convictions, falsely representing that C-Hear’s technology was in active trials with major customers and the federal government, and fabricating a multi-million-dollar deal with the Dallas Cowboys. The complaint also alleges that Harmon misappropriated approximately $641,000 from C-Hear investor funds and nearly all of the $405,000 invested in Elite Performance, using the money for personal expenses. These are allegations in a pending civil case — no final judgment has been entered.
No. This case was filed by the SEC — the Securities and Exchange Commission — not FINRA. Adena Harmon does not appear to be a registered broker-dealer or investment adviser and has no FINRA CRD number. The SEC has civil enforcement authority over securities fraud regardless of whether the person involved is a licensed financial professional. Investors in private company securities like C-Hear stock or Elite Performance membership interests can still have legal recourse even when the person who solicited them was not a licensed broker.
Potentially yes. The SEC complaint describes a broader pattern — C-Hear raised more than $4.2 million from at least 48 investors between 2019 and 2023, and the company has never generated any revenue. The three investors highlighted in the complaint are those whose specific transactions are detailed in the SEC’s allegations. If you invested in C-Hear during the relevant period and your funds were not returned, your situation may still be worth evaluating on its own facts and circumstances.
As of the date of this post, the SEC’s lawsuit is pending in federal court in Texas. The SEC is seeking injunctive relief, disgorgement of Harmon’s alleged profits plus interest, and civil penalties. A civil lawsuit does not automatically result in investor recovery — investors may need to pursue their own separate legal claims depending on their specific circumstances.
ChapmanAlbin works on contingency. If we take your case and do not recover money for you, you owe us nothing. There is no upfront fee and no cost to speak with one of our attorneys in a free initial consultation.
This page is for informational purposes only and does not constitute legal advice. The information presented is based on publicly available records including FINRA BrokerCheck and FINRA disciplinary filings. Past outcomes are not a guarantee of future results. Every matter depends on its own facts and circumstances and should be evaluated individually. This site contains attorney advertising. Any reference to past cases or successes should not be construed as a guarantee of any future outcome.
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