On 19 April 1814, the American privateer schooner General Armstrong captured her, though shortly thereafter the British Royal Navy recaptured her.

[5] Fanny sailed from Falmouth 26 August 1813 to Rio de Janeiro in convoy with about 30 other vessels and a Royal Navy escort.

At about midday on 18 April, Fanny was near the Irish coast when General Armstrong, captain Guy R. Champlin, from New York City, sighted her.

One of the severely injured was one of Fanny's co-owners, John Begg, who later recovered from his injuries and continued his trade with South America.

51.58, captured the British ship Fanny, from Pernambuco bound to Liverpool with a valuable cargo of cotton, coffee and tallow, burthen 337 tons, 16 guns 9 and 12 pounders, and 45 men, manned and ordered her in.

Engaged the Fanny forty minutes before she struck her colours; she had six men severely wounded and one killed; her hull rigging and sails were considerably cut up; the Armstrong received no damage.

[9] Later that day the American schooner encountered Principe, Captain da Silva, a Portuguese vessel en route from Maranham to Liverpool.

[17] Fanny finally arrived in Liverpool on 26 September and the cargo of cotton, coffee and tallow was delivered to the consignee.

[10] The High Court of Admiralty awarded Scepter's captain and crew the following salvage money:[18] Following the discharge of her cargo, the ship was sold and the underwriters recovered about £2310.

[13] These subsequent events gave rise to three civil claims: Fanny and the freight (charges) were insured separately.

The courts found in favour of Sceptre, agreeing that the cargo owner had forfeited neutrality by lading his goods on an armed merchant vessel from one of the warring states.

[20][21] The Register of Shipping for 1815 lists Fanny, prize, built in 1807, of 387 tons (bm), with W. Reay, master, Foreshaw, owner, and trade Liverpool—St Thomas.