Canopy Financial(Accounting case)
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FAClass7slides.pptxCanopy Financial
©2015 Pearson Education, Inc. All rights reserved
©2015 Pearson Education, Inc. All rights reserved
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Canopy Financial Background
2004- Company founded on a suite of software products that allowed savers to manage their Health Savings Accounts (HSA) online.
Hired well known law firm Wilson Sonsini and prepares for IPO in near future
2009 Revenue of $20mill, 100 employees, #12 on INC 500 fastest growing private companies. Expected $60mill revenue and $9mill EBITDA.
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Canopy Financial Background
2009 KPMG finds out about improper reference
Company opens investigation. SEC files fraud lawsuit
2012- 2 cofounders accused of stealing $18 million from customer HSA accounts as well as millions from Canopy Financial. Found guilty of fraud and sentenced to 13-15 years in jail.
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Written Assignment for Oct 31
Read the 2008 financial statements of Canopy Financial that are posted on Blackboard. Similar to the financial analysis you did for Mountain State, conduct an analysis of the financials to see if you can identify any red flags that might indicate fraud. Prepare a summary ,in bullet format, of the red flags you found and hand this in after class. This should be no more than one to two pages.
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