Health care software founder charged with fraud

AP News
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Posted: Dec 03, 2009 11:11 AM

A California businessman has been accused of using bogus financial data to defraud investors who put $60 million into a health care transaction software company he founded.

Federal Magistrate Judge Nan Nolan ordered Jeremy Blackburn of Malibu, Calif., released on a $1 million unsecured bond Wednesday after the complaint was filed.

The complaint accused Blackburn of siphoning off $2 million of the money invested in his Canopy Financial Inc. for personal expenses and luxury items.

Blackburn resigned recently as Canopy president and CEO.

Defense attorney Steven Kowal said Blackburn is cooperating with federal investigators.