Canopy Execs Depart Following Fraud Accusations

Two executives of Canopy Financial have left the company in the wake of accusations of financial fraud, a Canopy spokesman confirmed today.

President and chief operating officer Jeremy Blackburn has resigned, and chief technology officer Tony Banas has been placed on administrative leave. So far, peHUB has been unable to reach either one of them for comment.

CEO Vikram Kashyap released a statement yesterday through his attorney, saying that he had “no prior knowledge whatsoever of any fraud regarding Canopy’s financial statements” and that he “relied on financial and legal professionals in accepting the authenticity of the company’s financials.” Although Kashyap has stepped down as CEO of Canopy, he said he will remain as chairman to help hold any fraudsters accountable.

The spokesman also said that Canopy has informed its customers and investors of the fraud allegations and continues to service customers. Although most of the company’s 120 employees were let go last week, around 20 have been retained to keep the business running.

“Many people will not have the Thanksgiving they deserve,” the spokesman said.

Canopy has raised over $88 million in venture capital and provides software to administer Health Savings Accounts, Flexible Spending Accounts and Health Reimbursement Arrangements for individual and corporate healthcare plans.

Sources say Canopy may have falsified financial statements, tax returns and customer records. We’ll keep updating the story as we get more information.

See: Fraud Beneath The Canopy

3 Comments

  • Did you also observe that Vikram/Jeremy/Tony had their own venture capital firm running on the side – see http://74.125.93.132/search?q=cache:Wat08twuZksJ:spearventures.com/+spear+ventures&cd=1&hl=en&ct=clnk&gl=us

  • For their Spear Ventures bios (site now removed – this is a Google cache) see: http://74.125.95.132/search?q=cache:Q5RnRlETvs0J:spearventures.com/team.htm+spear+ventures+team&cd=2&hl=en&ct=clnk&gl=us

  • Domain record for spearventures.com from http://www.aplus.net/domains/whois/

    Domain Name: SPEARVENTURES.COM
    Registrar: ABACUS AMERICA, INC. DBA NAMES4EVER
    Whois Server: whois.names4ever.com
    Referral URL: http://www.names4ever.com
    Nameserver: NS3.MYDYNDNS.ORG
    Nameserver: NS4.MYDYNDNS.ORG
    Status: ok
    Updated Date: 13-may-2009
    Creation Date: 12-may-2007
    Expiration Date: 12-may-2010

    Web Site Info for spearventures.com
    Server:
    Response Code: 404 Not Found

    Title: Not Found

    Contact Info
    Registrant:
    Vikram Kashyap
    1560 3rd Street, Apt 1407
    San Francisco, CA 94158
    US

    Domain name: SPEARVENTURES.COM

    Administrative Contact:
    Kashyap, Vikram vkashyap@canopyfi.com
    1560 3rd Street, Apt 1407
    San Francisco, CA 94158
    US
    +1.4158397335
    Technical Contact:
    Kashyap, Vikram vkashyap@canopyfi.com
    1560 3rd Street, Apt 1407
    San Francisco, CA 94158
    US
    +1.4158397335

    Registration Service Provider:
    APLUS.NET, dns@aplus.net
    877.275.8763
    This company may be contacted for domain login/passwords,
    DNS/Nameserver changes, and general domain support questions.

    Registrar of Record: Aplus.net
    Record last updated on 06-Nov-2009.
    Record expires on 12-May-2010.
    Record created on 12-May-2007.

    Domain servers in listed order:
    NS2.MYDYNDNS.ORG 204.13.249.76
    NS3.MYDYNDNS.ORG 208.78.69.76
    NS4.MYDYNDNS.ORG 91.198.22.76
    NS1.MYDYNDNS.ORG 204.13.248.76

    Domain status: ok

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