Here's The SEC Complaint Against Canopy
Former chief technology officer Tony Banas is not a defendant in this suit and remains on the board of directors, according to the SEC's complaint, which was filed this week in federal court in Chicago. Canopy and Jeremy Blackburn, Canopy's former president and chief operating officer, are defendants, however, and are accused of engaging in a fraudulent scheme to raise $75 million from investors. The complaint describes false financial statements and a false KPMG audit, along with false bank statements and inaccurate monthly operating reports. Blackburn is also accused of misappropriating $1.17 million of investor funds for personal use. He allegedly sent the false KPMG audit and false financial statements to former CEO Vikram Kashyap, who has claimed to know nothing about the fraud, and asked Banas in e-mail messages to lie about the existence of the KPMG audit.
