: A classic
story (civil suit by the SEC
) combined with the most modern in misappropriation
of health care savings
. CFO Jeremy Blackburn, already on the hook for investment fraud, was charged today (*pdf)
along with chief tech officer Anthony Banas with misappropriating millions from individual clients health care accounts. On ripoffreport
, Vladimir Makarov says he found out about it when his HSA debit card
When someone at Canopy contacted KPMG
looking for recommendations for a new Chief Financial Officer they sent along some financial reports, ostensibly audited by KPMG.
...except KPMG had never looked at their books.
So the folks at KPMG thought about that for a bit. When they thought about it enough they sent Canopy a cease and desist letter so their forged reports didn't have "AUDITED BY KPMG" emblazoned all over them.
Blackburn was (allegedy) passing the fake statements to Spectrum Equity Investors who fronted Canopy a big chunk of change (if $75 million is not a big chunk of change to you - congratulations) and craftily sent e-mails around saying how arduous being audited was, by KPMG, and mentioned to Banas not to forget how they were scamming everyone by saying KPMG audited them.
So Blackburn (et.al) lied, goosed Canopy's position, and cashed in their stock and made over $1.6 million.
According to the new charges they also skimmed money off of a transfer of $19 million (from health care accounts the company held custodially to pay medical providers) to Canopy's operating accounts.
Blackburn's end was $2 million (for an interest in a private jet), $1 million to an auto dealership, $1 million to a ticket broker. Bana got about $300,000 for a nightclub investment.