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

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