Wednesday, November 25, 2009

Canopy Financial, total SCAM.

TechCrunch reported earlier today that Canopy Financial is a fraud. Maybe the most pathetic aspect is that the audited financials of Canopy Financial were displayed on FAKE KPMG letterhead. Neither the i-bank nor venture investors bothered to verify the numbers beyond that. This may destroy the bank that arranged financing, as well as the venture capitalists who threw money at it so blindly

A disgusting lack of due diligence. Here's the email from the investment bank that promoted the company, politely asking TechCrunch not to use their name. Uhhhh, right:

“Hi there, I’d respectfully ask for some consideration here and would like to have our information / logos / screenshots taken off of your Canopy Financial posts. We clearly had no clue about any such wrongdoing and exposure to this is not something we are interested in. Understand you guys are all about the news, but we’re a small firm and had nothing to do with this. Please pass to Michael Arrington if you don’t mind.”

One of the investors was Spectrum Equity, which lost $62.5million. They immediately deleted Canopy from their "investments" portion of their site:




2 comments:

  1. Doubt anyone is going to be f'd except the gang who committed fraud, not the ones that were defrauded.

    ReplyDelete
  2. I don't believe in Due Dilligence, it impairs idiots from acting on impulse.

    ha.

    ReplyDelete