Canopy Financial, a vendor of software to help employers, banks and consumers manage health savings accounts, has filed for bankruptcy protection amid a FBI investigation into alleged fraudulent bookkeeping and theft. Jeremy Blackburn has resigned as president and has been charged with filing fraudulent financial documents, according to Inc. magazine and numerous other published reports.
Blackburn also is charged with pocketing $2 million in investor funds for personal use, the Associated Press reports. Vikram Kashyap, CEO of the San Francisco-based company has resigned but remains board chair and says he had no knowledge of wrongdoing. Anthony Banas, chief technology officer has been placed on administrative leave.
Further, the San Francisco-based company, with offices in Chicago and Plainsboro, N.J., has laid off at least three-quarters of its workforce. Canopy Financial's Web site, canopyfi.com, now is a single page listing contact information.
Canopy Financial sells a health care banking platform that helps manage electronic payment, administration and account management functions to support HSAs, flexible spending accounts and health reimbursement arrangements. Other products from the vendor include portal application for employers to process transactions and for consumers to manage their personal accounts.
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