25 February 2018
visit www.nextgenbanking.co.uk/

SEC files fraud charges against healthcare banking tech firm

03 December 2009  |  6464 views  |  0 STOP

The Securities and Exchange Commission (SEC) has filed fraud charges against Canopy Financial, a provider of healthcare banking technology, and frozen the assets of its co-founder who allegedly provided investors with forged financial statements to lure them into a $75 million investment scheme.

According to the SEC, between October 2008 and this August, Jeremy Blackburn, who resigned earlier this month as president and COO, allegedly got investors to hand over $75 million in a private placement offering in the firm by misrepresenting its financial position.

Investors in the group include Foundation Capital, GGV Capital and Spectrum Equity Investors.

Blackburn is accused of providing them with bank and financial statements containing false and misleading information as well as a falsified audit report purportedly from accounting firm KPMG.

Blackburn moved at least $1.7 million from the offering into his personal bank accounts, says the watchdog.

A court has now granted the SEC a temporary restraining order and asset freeze against Blackburn. The FBI is also investigating the company.

The alleged fraud came to light when KPMG discovered that Canopy had been claiming that its financial statements for 2007 and 2008 were audited by the accounting firm. KPMG issued a cease-and-desist letter to Canopy demanding that it stop the unauthorised use of its name and the audit report purportedly issued by it.

Last week it filed for Chapter 11 bankruptcy in Illinois. An affidavit revealed that an investigation by a committee formed of outside directors, attorneys and forensic accountants found that two people at the company were involved in the alleged fraud and were removed from management and placed on unpaid leave.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

SEC charges computer programmers over Madoff fraud

SEC charges computer programmers over Madoff fraud

13 November 2009  |  4936 views  |  0 comments
FSA fines Seymour Pierce for employee fraud

FSA fines Seymour Pierce for employee fraud

08 October 2009  |  4354 views  |  0 comments
FBI makes arrests in $80m bank fraud case

FBI makes arrests in $80m bank fraud case

19 August 2009  |  7502 views  |  0 comments

Related company news


Related blogs

Create a blog about this story (membership required)
Visit http://info.nice.comvisit www.nextgenbanking.co.ukvisit www.swift.com/your-needs/instant-payments

Top topics

Most viewed Most shared
Ripple makes new connections to emerging marketsRipple makes new connections to emerging m...
12666 views comments | 16 tweets | 10 linkedin
hands typing furiouslySome Interesting Applications Of The Inter...
10832 views 4 | 9 tweets | 1 linkedin
Basel Committee outlines disruptive fintech scenariosBasel Committee outlines disruptive fintec...
9330 views comments | 15 tweets | 26 linkedin
Investment Association sets up fintech accelerator for asset managersInvestment Association sets up fintech acc...
8692 views comments | 19 tweets | 10 linkedin
R3 creates Legal Centre of Excellence for blockchain technolgyR3 creates Legal Centre of Excellence for...
8635 views comments | 11 tweets | 14 linkedin

Featured job

Competitive base + commission + benefits
New York City, NY - USA

Find your next job