$75 Million Fraud: SEC Freezes assets of Canopy Financial Co-Founder

December 8th, 2009
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The SEC has filed fraud charges and obtained an asset freeze against Canopy Financial Inc. and Jeremy J. Blackburn, co-founder, former president and chief operating officer of the health care financial services company. The SEC alleges that Blackburn “solicited investors for a private placement offering for preferred shares of Canopy” and distributed falsified audit reports and financial statements with exaggerated information to lure investors into the $75 million investment scheme. Blackburn further “misappropriated at least $1.7 million from the offering into his personal bank accounts,” the SEC contends.

KPMG, the accounting firm to which Blackburn attributed the falsified audit report, discovered Canopy’s claims and sent the company a cease-and-desist letter. According to the SEC, KMPG “had never been retained by Canopy to audit its financial statements and had never opined on the financial condition of the company.” Canopy and Blackburn ran the scheme from October of 2008 through August of 2009.

Thursday of this week will match the one year anniversary of when Bernie Madoff’s notorious Ponzi Scheme was announced to authorities. Since then the HedgeTracker Hall of Fraud list was created and it now highlights over $86,206 million in investors capital that has been lost as a result of alleged frauds.
For Detailed Investor Profiles on these Investors, click below:
Canopy Financial
Madoff Investments LLC
Related People: Bernard Madoff; Jeremy J. Blackburn
Related Article Tags: Hedge Fund Fraud and Ponzi Scheme News


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