Canopy Financial Adversary Complaint

IN THE UNITED STATES BANKRUPTCY COURT FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION In re: CANOPY FINANCIAL, INC., Debtor. _____________________________________

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Chapter 7 Case No. 09 B 44943 Hon. Eugene R. Wedoff

GUS A. PALOIAN, not individually but solely as chapter 7 trustee for Canopy Financial, Inc., Plaintiff, v. JEREMY BLACKBURN and ANTHONY BANAS, Defendants.

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Adv. No. ______________________

COMPLAINT

Plaintiff Gus A. Paloian, not individually but solely as chapter 7 trustee (“Trustee” or

“Plaintiff”) for the bankruptcy estate of Canopy Financial, Inc. (“Canopy” or the “Debtor”)

hereby states for his Complaint as follows:

NATURE OF THE ACTION

1. This is an adversary proceeding by Canopy’s bankruptcy Trustee against two

former officers and directors of Canopy, Jeremy Blackburn (“Blackburn”) and Anthony Banas

(“Banas” and together with Blackburn, “Defendants”). Beginning no later than January 2008

through November 2009, Blackburn and Banas looted millions of dollars from Canopy,

including but not limited to the proceeds of funds Canopy was supposed to be holding in

custodial accounts for the benefit of individuals whose health saving accounts (“HSAs”) were

Case 10-00413 Doc 1 Filed 03/26/10 Entered 03/26/10 15:26:50 Desc Main Document of 36

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serviced by Canopy. Blackburn and Banas stole these funds and used them to go on a spending

spree, buying (among other things) millions of dollars in luxury vehicles and exotic sports cars, a

two million dollar watch collection, an interest in a Gulfstream G-IV jet aircraft, tickets to

sporting/entertainment events, luxury residences and properties, and numerous other luxury

goods and services.

2. This Complaint seeks actual damages exceeding $50 million, plus punitive

damages. Plaintiff also seeks a Preliminary Injunction against Banas requiring all persons,

entities, and institutions with actual knowledge of such order to freeze any and all assets and

accounts held by or for the benefit of Banas.1

JURISDICTION AND VENUE 3. This Court has jurisdiction pursuant to 28 U.S.C. § 1334(b) because this

adversary proceeding is related to and arises under the chapter 7 case, In re Canopy Financial,

Inc., Case No. 09-44943, pending in the United States Bankruptcy Court for the Northern

District of Illinois, Eastern Division.

4. Venue is proper in this District pursuant to 28 U.S.C. § 1409(a).

5. This Complaint is a core proceeding pursuant to 28 U.S.C. § 157(b)(2)(A), (E),

(F), (H), and (O).

THE PARTIES 6. Plaintiff Gus A. Paloian is the chapter 7 trustee for Canopy, duly appointed under

section 701 of the Bankruptcy Code by the United States Trustee on December 30, 2009.

7. Canopy is a Delaware corporation, headquartered in Chicago, Illinois.

1 The Securities and Exchange Commission has already obtained a freeze order against Blackburn in Case No. 09 CV 7429, alleging securities fraud in connection with a 2009 private placement offering of Canopy securities. The Trustee reserves the right to seek injunctive relief against Blackburn in this adversary proceeding.


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8. Defendant Blackburn is a resident of Inver Grove Heights, Minnesota. At all

times relevant to this Complaint, Blackburn was co-founder, President, Chief Operating Officer,

a director, and a controlling shareholder of Canopy.

9. Defendant Banas is a resident of Chicago, Illinois. At all times relevant to this

Complaint, Banas was co-founder, Chief Technology Officer, a director, and a controlling

shareholder of Canopy.

FACTS

10. Prior to the Petition Date, Canopy was a provider of health savings and flexible

spending account management, banking, and processing services.

11. Canopy was founded in 2004 by Blackburn, Banas, and Vikram A. Kashyap.

Until approximately November 2009, Kashyap served as Chief Executive Officer, Blackburn

served as Chief Operating Officer and President, and Banas served as Chief Technology Officer.

12. Canopy maintained its principal office in Chicago, Illinois, and other secondary

offices in San Francisco, California, and Plainsboro, New Jersey.

13. Canopy supported tens of thousands of consumer-driven healthcare accounts, and

processed hundreds of thousands of healthcare-related transactions annually. Canopy’s flagship

products, HealthDirect and CareGain, were considered among the leading technology-enabled

electronic payment, account management, and investment technology platforms for HSAs,

flexible spending accounts, and health reimbursement arrangements. Canopy’s products

incorporated plan design, expense tracking, integrated investment trading, online bill payment,

ACH payment processing, debit card management systems, account management, customer

service interfaces, and plan advisory capabilities.

14. Canopy solicited customers by offering them the opportunity to have their

employee HSAs managed by Canopy using its flagship products. In some cases, Canopy’s


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customers deposited monies for healthcare savings into accounts of Canopy designated as

custodial accounts. Canopy then maintained and processed payouts related to those funds.

15. Canopy purported to experience significant growth from 2004 through 2009, and

in 2009, it was ranked #12 on Inc. Magazine’s list of fastest growing companies. Despite

Canopy’s external indicators of growth and success, Defendants in reality were stealing funds

from both Canopy and its customers, and were lying about the magnitude of Canopy’s growth.

16. Beginning no later than January 2008, Defendants began removing funds from

custodial accounts maintained for the benefit of HSA customers, and directly or indirectly used a

large portion of those funds to acquire luxury items and services for themselves.

17. Beginning no later than January 2008, Defendants directed, oversaw, and

participated in making the following transfers from Canopy’s HSA custodial accounts to

Canopy’s operating accounts, which thereafter were used by Defendants for improper purposes:

DATE AMOUNT TRANSFERED 1/8/2008 $10,000.00

3/17/2008 $100,000.003/27/2008 $425,000.004/4/2008 $25,000.004/9/2008 $125,000.00

4/11/2008 $9,000.004/14/2008 $50,000.004/16/2008 $40,000.004/22/2008 $50,000.005/19/2008 $10,000.005/29/2008 $75,000.007/17/2008 $44,000.009/26/2008 $90,000.0010/9/2008 $42,000.00

10/27/2008 $20,000.0011/6/2008 $61,856.9811/7/2008 $180,117.50

11/10/2008 $192,259.6311/12/2008 $165,940.6311/13/2008 $175,841.1111/14/2008 $168,841.99


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DATE AMOUNT TRANSFERED 11/17/2008 $97,165.3611/19/2008 $197,165.3611/20/2008 $172,165.3611/25/2008 $112,165.3611/28/2008 $142,351.8712/2/2008 $161,478.1112/3/2008 $147,345.1112/4/2008 $127,119.76

12/12/2008 $151,671.3312/16/2008 $182,665.6512/18/2008 $131,156.5112/19/2008 $130,881.8812/23/2008 $130,881.88

1/6/2009 $190,881.881/7/2009 $190,881.881/9/2009 $13,254.77

1/12/2009 $173,231.721/13/2009 $100,000.001/16/2009 $163,231.721/20/2009 $198,931.721/20/2009 $242,000.001/21/2009 $148,931.721/23/2009 $167,132.111/28/2009 $50,000.001/29/2009 $117,658.111/30/2009 $168,741.212/4/2009 $72,548.212/4/2009 $184,791.612/5/2009 $176,584.742/6/2009 $132,574.492/9/2009 $159,128.90

2/10/2009 $192,352.282/11/2009 $192,352.282/12/2009 $131,521.742/13/2009 $169,587.112/13/2009 $50,000.002/17/2009 $80,577.212/18/2009 $160,181.422/19/2009 $120,181.422/20/2009 $20,157.982/20/2009 $12,567.122/23/2009 $53,093.212/24/2009 $106,112.842/24/2009 $2,500.00


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DATE AMOUNT TRANSFERED 2/25/2009 $43,093.212/25/2009 $150,276.122/26/2009 $181,402.552/27/2009 $66,217.102/27/2009 $97,985.623/2/2009 $189,658.123/3/2009 $194,521.143/4/2009 $66,217.103/4/2009 $75,189.113/5/2009 $184,569.513/6/2009 $144,569.513/9/2009 $186,771.10

3/10/2009 $186,771.103/11/2009 $197,145.973/12/2009 $196,887.103/13/2009 $124,871.923/13/2009 $132,768.183/17/2009 $197,642.193/18/2009 $173,642.193/19/2009 $192,156.473/20/2009 $191,722.183/23/2009 $165,996.523/24/2009 $125,996.523/25/2009 $69,871.523/26/2009 $117,519.003/30/2009 $87,500.003/31/2009 $127,519.004/1/2009 $160,672.114/2/2009 $160,672.114/3/2009 $160,672.114/6/2009 $150,143.544/7/2009 $96,123.544/7/2009 $50,000.004/9/2009 $191,508.434/9/2009 $25,000.00

4/10/2009 $106,728.634/13/2009 $181,721.114/14/2009 $164,712.864/15/2009 $31,050.764/15/2009 $100,000.004/16/2009 $192,872.554/17/2009 $189,718.124/17/2009 $50,000.004/20/2009 $189,718.12


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DATE AMOUNT TRANSFERED 4/21/2009 $189,718.124/22/2009 $189,718.124/23/2009 $135,672.944/24/2009 $135,672.944/27/2009 $109,420.084/28/2009 $138,652.084/29/2009 $138,652.084/30/2009 $138,652.085/5/2009 $188,652.08

5/12/2009 $22,000.005/13/2009 $111,009.125/15/2009 $111,009.125/20/2009 $49,128.965/21/2009 $1,000.005/22/2009 $41,097.755/22/2009 $59,417.115/26/2009 $130.005/27/2009 $14,010.065/29/2009 $25,000.006/5/2009 $10,000.00

6/17/2009 $12,000.006/17/2009 $3,000.006/18/2009 $9,417.116/18/2009 $12,165.106/18/2009 $14,010.066/18/2009 $16,589.736/18/2009 $19,614.126/22/2009 $18,755.486/22/2009 $19,691.886/24/2009 $30,913.156/24/2009 $301,642.877/2/2009 $3,691.147/7/2009 $11,000.007/8/2009 $24,318.21

7/10/2009 $40,112.627/15/2009 $70,734.177/28/2009 $54,318.217/29/2009 $30,913.158/6/2009 $10,345.008/6/2009 $1,080,000.00

8/10/2009 $26,059.578/14/2009 $125,000.009/8/2009 $100,000.00


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DATE AMOUNT TRANSFERED 9/23/2009 $100,000.009/30/2009 $100,000.00

10/15/2009 $100,000.0011/4/2009 $100,000.00TOTAL: $18,198,459.03

18. On information and belief, Defendants caused and directed additional amounts to

be transferred from Canopy’s HSA custodial accounts to Canopy’s operating accounts, and

thereafter used those funds for improper purposes.

19. Beginning no later than January 2008, Defendants caused and directed Canopy to

issue false financial statements, and maintained fraudulent books and records, which failed to

reflect Canopy’s liabilities to HSA customers whose funds had been stolen by Defendants.

20. In November 2009, Defendants’ fraud scheme unraveled after Canopy discovered

Defendants’ misconduct.

21. On November 25, 2009, Canopy commenced a chapter 11 bankruptcy proceeding

in this Court.

22. On November 30, 2009, the Securities and Exchange Commission (“SEC”) filed a

three-count complaint against Canopy and Blackburn in S.E.C. v. Canopy Financial, Inc. and

Jeremy Blackburn, Case No. 09 CV 7429, in the United States District Court for the Northern

District of Illinois, alleging securities fraud in connection with a 2009 private placement offering

of Canopy securities. (A copy of the SEC’s Complaint is attached as Exhibit 1.) That same day,

the SEC secured an Order from the District Court freezing the assets of Blackburn.

23. On November 30, 2009, Blackburn was charged with wire fraud in a criminal

complaint. (A copy of the complaint is attached as Exhibit 2.)


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24. On December 30, 2009, Canopy’s chapter 11 bankruptcy case was converted to a

chapter 7 bankruptcy case, and Gus A. Paloian was appointed as chapter 7 trustee of the

bankruptcy estate.

25. On March 1, 2010, Blackburn and Banas were charged with two counts of wire

fraud in a criminal information. (A copy of the information is attached as Exhibit 3.)

THE TRANSFERS

26. During the two-year period preceding the commencement of Canopy’s

bankruptcy case, Defendants caused Canopy to transfer more than $18 million to themselves or

to third parties for their benefit, all of which constituted fraudulently realized proceeds of

Defendants’ unlawful activities. Commencing no later than January 2008, Defendants

misappropriated Canopy funds and assets for their own benefit, as described below, which

represent only some of the numerous transfers Defendants caused Canopy to make for their

benefit.

DIRECT CASH TRANSFERS

27. From August 2008 through October 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Blackburn:

TRANSFEREE DATE AMOUNT TRANSFERRED Jeremy Blackburn 8/13/2008 $46,587.00 Jeremy Blackburn 8/13/2008 $96,113.12 Jeremy Blackburn 8/27/2008 $106,913.32 Jeremy Blackburn 9/3/2008 $81,303.00 Jeremy Blackburn 9/3/2008 $36,319.52 Jeremy Blackburn 9/4/2008 $81,303.00 Jeremy Blackburn 9/16/2008 $41,587.00 Jeremy Blackburn 9/16/2008 $46,913.32 Jeremy Blackburn 9/17/2008 $46,913.32 Jeremy Blackburn 9/17/2008 $41,587.00 Jeremy Blackburn 9/23/2008 $42,818.15 Jeremy Blackburn 9/25/2008 $42,818.15 Jeremy Blackburn 10/1/2008 $36,515.00


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TRANSFEREE DATE AMOUNT TRANSFERRED Jeremy Blackburn 10/2/2008 $36,515.00 Jeremy Blackburn 10/6/2008 $28,000.00 Jeremy Blackburn 10/7/2008 $86,623.25 Jeremy Blackburn 10/8/2008 $86,623.25 Jeremy Blackburn 10/14/2008 $31,616.14 Jeremy Blackburn 10/15/2008 $46,119.45 Jeremy Blackburn 10/15/2008 $31,616.14 Jeremy Blackburn 10/16/2008 $61,837.64 Jeremy Blackburn 10/17/2008 $31,616.14 Jeremy Blackburn 10/17/2008 $61,837.64 Jeremy Blackburn 10/17/2008 $46,119.45 Jeremy Blackburn 10/30/2008 $36,118.14 Jeremy Blackburn 10/31/2008 $36,118.14 Jeremy Blackburn 11/4/2008 $36,118.14 Jeremy Blackburn 11/5/2008 $36,118.14 Jeremy Blackburn 11/10/2008 $26,319.00 Jeremy Blackburn 11/12/2008 $26,319.00 Jeremy Blackburn 11/24/2008 $26,118.14 Jeremy Blackburn 11/24/2008 $33,691.00 Jeremy Blackburn 11/25/2008 $33,691.00 Jeremy Blackburn 11/25/2008 $26,118.14 Jeremy Blackburn 11/26/2008 $106,913.32 Jeremy Blackburn 12/9/2008 $24,823.98 Jeremy Blackburn 12/9/2008 $31,388.53 Jeremy Blackburn 12/10/2008 $24,823.98 Jeremy Blackburn 12/10/2008 $31,388.53 Jeremy Blackburn 12/16/2008 $29,808.12 Jeremy Blackburn 12/17/2008 $19,500.00 Jeremy Blackburn 12/17/2008 $29,808.12 Jeremy Blackburn 12/18/2008 $19,500.00 Jeremy Blackburn 12/22/2008 $21,948.02 Jeremy Blackburn 12/23/2008 $21,948.02 Jeremy Blackburn 12/30/2008 $39,808.12 Jeremy Blackburn 12/31/2008 $39,808.12 Jeremy Blackburn 1/7/2009 $28,414.00 Jeremy Blackburn 1/8/2009 $24,414.00 Jeremy Blackburn 1/9/2009 $208,833.00 Jeremy Blackburn 1/15/2009 $27,833.00 Jeremy Blackburn 1/16/2009 $27,833.00 Jeremy Blackburn 1/19/2009 $31,650.00 Jeremy Blackburn 1/21/2009 $31,650.00 Jeremy Blackburn 1/27/2009 $41,890.15 Jeremy Blackburn 1/29/2009 $23,180.00 Jeremy Blackburn 1/29/2009 $41,890.15


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TRANSFEREE DATE AMOUNT TRANSFERRED Jeremy Blackburn 1/29/2009 $23,180.00 Jeremy Blackburn 2/9/2009 $91,833.00 Jeremy Blackburn 2/12/2009 $23,180.00 Jeremy Blackburn 2/13/2009 $23,180.00 Jeremy Blackburn 3/3/2009 $41,619.00 Jeremy Blackburn 3/4/2009 $41,619.00 Jeremy Blackburn 3/5/2009 $28,180.00 Jeremy Blackburn 3/6/2009 $28,180.00 Jeremy Blackburn 3/13/2009 $36,619.00 Jeremy Blackburn 3/17/2009 $23,180.00 Jeremy Blackburn 3/17/2009 $23,180.00 Jeremy Blackburn 3/25/2009 $31,804.00 Jeremy Blackburn 3/25/2009 $23,180.00 Jeremy Blackburn 4/1/2009 $31,650.00 Jeremy Blackburn 4/10/2009 $31,804.00 Jeremy Blackburn 4/14/2009 $71,816.00 Jeremy Blackburn 4/23/2009 $28,120.00 Jeremy Blackburn 4/27/2009 $51,804.00 Jeremy Blackburn 4/28/2009 $51,804.00 Jeremy Blackburn 5/13/2009 $21,804.00 Jeremy Blackburn 5/15/2009 $21,804.00 Jeremy Blackburn 5/20/2009 $14,816.00 Jeremy Blackburn 6/4/2009 $11,804.00 Jeremy Blackburn 6/9/2009 $110,000.00 Jeremy Blackburn 6/9/2009 $110,000.00 Jeremy Blackburn 6/11/2009 $76,439.00 Jeremy Blackburn 6/26/2009 $26,000.00 Jeremy Blackburn 7/1/2009 $25,113.00 Jeremy Blackburn 7/1/2009 $26,000.00 Jeremy Blackburn 7/16/2009 $31,765.00 Jeremy Blackburn 7/16/2009 $61,000.00 Jeremy Blackburn 7/16/2009 $60,000.00 Jeremy Blackburn 7/28/2009 $131,765.00 Jeremy Blackburn 7/28/2009 $4,000.00 Jeremy Blackburn 7/28/2009 $63,000.00 Jeremy Blackburn 8/12/2009 $81,000.00 Jeremy Blackburn 8/17/2009 $58,180.00 Jeremy Blackburn 8/17/2009 $58,180.00 Jeremy Blackburn 8/27/2009 $300,000.00 Jeremy Blackburn 8/28/2009 $916,000.00 Jeremy Blackburn 9/11/2009 $400,000.00 Jeremy Blackburn 9/30/2009 $468,817.00 Jeremy Blackburn 10/2/2009 $428,001.13 Jeremy Blackburn 10/23/2009 $326,418.12


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TRANSFEREE DATE AMOUNT TRANSFERRED TOTAL: $7,079,836.25

28. The funds transferred to Blackburn, as described in the foregoing paragraph,

constituted funds in which Canopy held an interest.

29. From September 2008 through October 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Banas:

TRANSFEREE DATE AMOUNT TRANSFERRED Anthony Banas 9/4/2008 $9,935.38 Anthony Banas 9/11/2008 $9,211.11 Anthony Banas 9/17/2008 $8,842.11 Anthony Banas 9/25/2008 $9,699.12 Anthony Banas 10/6/2008 $9,647.23 Anthony Banas 10/8/2008 $9,647.23 Anthony Banas 10/10/2008 $9,699.12 Anthony Banas 10/17/2008 $26,742.10 Anthony Banas 11/6/2008 $5,324.69 Anthony Banas 11/6/2008 $5,324.69 Anthony Banas 11/14/2008 $26,489.88 Anthony Banas 11/20/2008 $5,324.69 Anthony Banas 11/25/2008 $8,324.69 Anthony Banas 12/3/2008 $4,234.69 Anthony Banas 12/4/2008 $5,324.69 Anthony Banas 12/17/2008 $9,324.69 Anthony Banas 12/18/2008 $14,568.47 Anthony Banas 12/23/2008 $8,711.66 Anthony Banas 12/31/2008 $9,324.69 Anthony Banas 1/2/2009 $4,298.44 Anthony Banas 1/8/2009 $6,812.33 Anthony Banas 1/14/2009 $6,724.69 Anthony Banas 1/21/2009 $16,812.33 Anthony Banas 1/29/2009 $6,724.69 Anthony Banas 2/6/2009 $2,708.11 Anthony Banas 2/6/2009 $9,364.87 Anthony Banas 2/13/2009 $16,724.69 Anthony Banas 3/6/2009 $7,684.12 Anthony Banas 3/6/2009 $9,879.57 Anthony Banas 3/11/2009 $2,142.58 Anthony Banas 3/12/2009 $14,987.16 Anthony Banas 3/13/2009 $14,987.16


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TRANSFEREE DATE AMOUNT TRANSFERRED Anthony Banas 3/20/2009 $9,263.71 Anthony Banas 3/24/2009 $9,263.71 Anthony Banas 3/25/2009 $7,643.00 Anthony Banas 3/31/2009 $6,541.12 Anthony Banas 4/1/2009 $6,541.12 Anthony Banas 4/6/2009 $6,541.12 Anthony Banas 4/10/2009 $9,643.00 Anthony Banas 4/14/2009 $9,625.21 Anthony Banas 4/16/2009 $9,635.21 Anthony Banas 4/23/2009 $9,643.00 Anthony Banas 4/30/2009 $14,472.08 Anthony Banas 5/7/2009 $4,812.83 Anthony Banas 5/12/2009 $7,789.69 Anthony Banas 5/15/2009 $6,519.01 Anthony Banas 5/15/2009 $7,789.69 Anthony Banas 5/20/2009 $9,416.21 Anthony Banas 5/28/2009 $14,382.19 Anthony Banas 6/1/2009 $13,881.71 Anthony Banas 6/4/2009 $8,715.91 Anthony Banas 6/4/2009 $9,416.21 Anthony Banas 6/12/2009 $9,763.12 Anthony Banas 6/18/2009 $4,693.99 Anthony Banas 6/23/2009 $9,618.95 Anthony Banas 6/26/2009 $9,751.11 Anthony Banas 7/2/2009 $7,500.00 Anthony Banas 7/2/2009 $9,318.82 Anthony Banas 7/9/2009 $7,912.98 Anthony Banas 7/14/2009 $9,112.98 Anthony Banas 7/17/2009 $7,500.00 Anthony Banas 7/17/2009 $9,318.82 Anthony Banas 7/20/2009 $4,600.00 Anthony Banas 7/23/2009 $4,600.00 Anthony Banas 7/29/2009 $7,500.00 Anthony Banas 7/29/2009 $9,318.82 Anthony Banas 7/30/2009 $17,782.12 Anthony Banas 8/10/2009 $9,112.98 Anthony Banas 8/13/2009 $9,318.82 Anthony Banas 8/17/2009 $17,782.12 Anthony Banas 8/17/2009 $4,312.39 Anthony Banas 8/26/2009 $9,281.73


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TRANSFEREE DATE AMOUNT TRANSFERRED Anthony Banas 9/1/2009 $19,318.82 Anthony Banas 9/2/2009 $9,781.73 Anthony Banas 9/4/2009 $9,519.11 Anthony Banas 9/9/2009 $17,419.81 Anthony Banas 9/14/2009 $9,519.11 Anthony Banas 9/18/2009 $9,371.32 Anthony Banas 9/21/2009 $23,194.11 Anthony Banas 9/23/2009 $45,419.81 Anthony Banas 9/24/2009 $23,194.11 Anthony Banas 9/30/2009 $34,857.00 Anthony Banas 10/8/2009 $9,412.41 Anthony Banas 10/15/2009 $8,472.91 Anthony Banas 10/22/2009 $9,691.70 Anthony Banas 10/23/2009 $8,472.91 Anthony Banas 10/27/2009 $9,218.02

TOTAL: $922,050.03

30. The funds transferred to Banas, as described in the foregoing paragraph,


PRIVATE JET TRAVEL AND OWNERSHIP

31. From March 2009 through October 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to NetJets International, Inc.:

TRANSFEREE DATE AMOUNT PAID NetJets Inc. 3/18/2009 $348,084.00 NetJets Inc. 5/28/2009 $219,207.68 NetJets Inc. 7/16/2009 $901,460.00 NetJets Inc. 8/13/2009 $583,924.71 NetJets Inc. 9/21/2009 $311,463.00 NetJets Inc. 10/13/2009 $625,000.00 NetJets Inc. 10/30/2009 $122,206.74

TOTAL: $3,111,346.74

32. The funds transferred to NetJets Inc., as described in the foregoing paragraph,



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33. Defendants used a portion of the proceeds of the transfers identified in paragraph

31 to purchase two 25% fractional interests in two Gulfstream G-IV-SP jet aircrafts titled in

Blackburn’s name. Defendants used the balance of the funds to maintain ownership of the jets

and to pay for flights around the country, ground transportation, and catering services for their

families, friends, and girlfriends, including trips to California, Las Vegas, and Turks and Caicos.

34. From September 2008 through July 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Marquis Jet:

TRANSFEREE DATE AMOUNT PAID Marquis Jet 9/3/2008 $16,578.24 Marquis Jet 11/25/2008 $284,700.13 Marquis Jet 12/23/2008 $291,970.15 Marquis Jet 12/31/2008 $22,270.56 Marquis Jet 1/8/2009 $328,518.43 Marquis Jet 2/9/2009 $285,972.19 Marquis Jet 2/9/2009 $368,263.29 Marquis Jet 3/24/2009 $128,517.11 Marquis Jet 5/22/2009 $25,726.56 Marquis Jet 7/16/2009 $5,339.28

TOTAL: $1,757,855.94

35. The funds transferred to Marquis Jet, as described in the foregoing paragraph,


36. The proceeds of the transfers identified in paragraph 34 were used to purchase

flights around the country on private jets.

EXOTIC AND LUXURY AUTOMOBILES

37. From October 2008 through September 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Lakeshore Motor Cars:


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TRANSFEREE DATE AMOUNT PAID Lakeshore MC 10/7/2008 $347,000.00 Lakeshore MC 1/8/2009 $300,000.00 Lakeshore MC 4/14/2009 $170,000.00 Lakeshore MC 5/13/2009 $150,000.00 Lakeshore MC 6/1/2009 $100,000.00 Lakeshore MC 7/24/2009 $200,000.00 Lakeshore MC 9/3/2009 $23,750.00

TOTAL: $1,290,750.00

38. The funds transferred to Lakeshore Motor Cars, as described in the foregoing

paragraph, constituted funds in which Canopy held an interest.

39. The proceeds of the transfers identified in paragraph 37 were used (together with

trade-ins) to purchase a 2008 Ferrari F430, a 2008 Lamborghini Gallardo Spyder, a 2009

Cadillac Escalade, and a 2008 Bentley GT Speed.

40. From July 2009 through August 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to O’Gara Coach Company:

TRANSFEREE DATE AMOUNT PAID O’Gara 7/23/2009 $410,973.75 O’Gara 7/31/2009 $93,224.00 O’Gara 8/12/2009 $250,000.00 O’Gara 8/20/2009 $240,463.75

TOTAL: $994,661.50

41. The funds transferred to O’Gara Coach Company, as described in the foregoing


42. The proceeds of the transfers identified in paragraph 40 were used to purchase a

2009 Aston Martin DBS, a 2009 Rolls Royce Phantom, a 2010 Bentley GTC, and a 2010

Lamborghini Roadster.


participated in making the following transfers from Canopy to Putnam Leasing Company:


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TRANSFEREE DATE AMOUNT PAID Putnam Leasing Co 7/24/2009 $15,300.50 Putnam Leasing Co 8/5/2009 $329,537.00

TOTAL: $344,837.50

44. The funds transferred to Putnam Leasing Company, as described in the foregoing


45. The proceeds of the transfers identified in paragraph 43 were used to purchase a

2007 Lamborghini Roadster.


participated in making the following transfers from Canopy to All Points Capital Corporation:

TRANSFEREE DATE AMOUNT PAID All Points Capital Corp. 7/21/2009 $17,538.06 All Points Capital Corp. 8/6/2009 $7,672.79

TOTAL: $25,210.85

47. The funds transferred to All Points Capital Corporation, as described in the

foregoing paragraph, constituted funds in which Canopy held an interest.

48. The proceeds of the transfers identified in paragraph 46 were used (together with

a trade-in) to purchase a Lamborghini.

49. On September 3, 2009, Defendants directed, oversaw, and participated in

transferring $305,050 from Canopy to Finance 2000 LLC, an affiliate of a luxury motorcar

dealer, Symbolic Motor Car Company. Those funds were used to purchase a 2008 Lamborghini

Murcielago LP640.

50. The funds transferred to Finance 2000 LLC, as described in the foregoing



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LUXURY RESIDENCES

51. From March 2009 through October 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Pacific Home Developers:

TRANSFEREE DATE AMOUNT PAID Pacific Home Developers 3/31/2009 $140,000.00 Pacific Home Developers 5/22/2009 $50,000.00 Pacific Home Developers 7/1/2009 $75,000.00 Pacific Home Developers 7/22/2009 $50,000.00 Pacific Home Developers 8/20/2009 $50,000.00 Pacific Home Developers 9/24/2009 $50,000.00 Pacific Home Developers 10/21/2009 $50,000.00

TOTAL: $465,000.00

52. The funds transferred to Pacific Home Developers, as described in the foregoing


53. On information and belief, the proceeds of the transfers identified in paragraph 51

were utilized in connection with the use of a luxury residence by Blackburn and/or Banas.

54. From February 2009 through October 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to the Bedros Oruncakciel Family

Trust:

TRANSFEREE DATE AMOUNT PAID Bedros Oruncakciel Family Trust 2/11/2009 $159,600.00 Bedros Oruncakciel Family Trust 3/24/2009 $57,000.00 Bedros Oruncakciel Family Trust 4/14/2009 $57,000.00 Bedros Oruncakciel Family Trust 5/22/2009 $57,000.00 Bedros Oruncakciel Family Trust 7/1/2009 $57,000.00 Bedros Oruncakciel Family Trust 7/22/2009 $57,000.00 Bedros Oruncakciel Family Trust 8/20/2009 $57,000.00 Bedros Oruncakciel Family Trust 9/24/2009 $57,000.00 Bedros Oruncakciel Family Trust 10/21/2009 $57,000.00

TOTAL: $615,600.00

55. The funds transferred to the Bedros Oruncakciel Family Trust, as described in the



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56. On information and belief, the proceeds of the transfers identified in paragraph 54

were used in connection with the use of a luxury residence by Blackburn and/or Banas.

57. In January 2009, Defendants directed, oversaw, and participated in transferring

$223,500 from Canopy to West Coast Escrow.

58. The funds transferred to West Coast Escrow, as described in the foregoing


59. The proceeds of the transfer identified in paragraph 57 were used in connection

with the purchase of a $7.1 million luxury residence by Blackburn.

SPORTS AND ENTERTAINMENT

60. From December 2008 through August 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Just Great Seats and its owner,

Marc Hamid:

TRANSFEREE DATE AMOUNT PAID Just Great Seats 12/5/2008 $200,000.00 Just Great Seats 1/9/2009 $163,600.00 Just Great Seats 3/12/2009 $200,000.00 Marc Hamid 4/14/2009 $243,300.00 Marc Hamid 8/27/2009 $419,896.50

TOTAL: $1,226,796.50

61. The funds transferred to Just Great Seats and Marc Hamid, as described in the


62. The proceeds of the transfers identified in paragraph 60 were used to purchase

tickets to sporting events, and for other personal reasons.

63. From January 2009 through August 2009, Defendants directed, oversaw, and

participated in making the following transfers from Canopy to Richard Zasiebida, an employee

of Just Great Seats:


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TRANSFEREE DATE AMOUNT PAID Richard Zasiebida 1/6/2009 $8,000.00 Richard Zasiebida 1/21/2009 $27,200.00 Richard Zasiebida 6/15/2009 $5,550.00 Richard Zasiebida 7/14/2009 $10,000.00 Richard Zasiebida 8/27/2009 $40,300.00

TOTAL: $91,050.00

64. The funds transferred to Rich Zasiebida, as described in the foregoing paragraph,


65. The proceeds of the transfers in paragraph 63 were used to purchase tickets to

sporting events, and for other personal reasons.

ARABIAN HORSE

66. On April 14, 2009, Defendants directed, oversaw, and participated in transferring

$30,000 from Canopy to Cedar Ridge, a farm in Jordan, Minnesota. Purebred Arabian and Half-

Arabian horses are bred at Cedar Ridge.

67. The funds transferred to Cedar Ridge, as described in the foregoing paragraph,


68. The proceeds of the transfer identified in paragraph 66 were used to purchase an

Arabian horse.

ILLEGAL REDEMPTION PAYMENTS

69. In July 2009, Canopy sold over $63 million of its Series D preferred stock as part

of a private placement offering and received the proceeds thereof from investors. In August

2009, Canopy sold an additional $12 million of its Series D preferred stock as part of a private

placement offering and received the proceeds thereof from investors.

70. In connection with the private placement offering, Defendants Blackburn and

Banas prepared financial statements that contained numerous false statements and omissions.


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Blackburn and Banas misrepresented that KPMG had audited the financials and forged a KPMG

auditor certification that accompanied the false financial statements they had prepared.

71. Canopy used approximately $40 million of the raised capital to repurchase shares

of its common stock, Series A preferred stock, and Series B preferred stock from certain existing

Canopy stockholders, including Defendants. In connection therewith, Blackburn received a

redemption payment of $1,625,913, and Banas received a redemption payment of $975,548.

72. In addition to the specific transfers identified in paragraphs 27 through 71 above,

Defendants directed, oversaw, and participated in making numerous additional transfers from

Canopy to themselves and to third parties for their benefit (together with the transfers identified

in paragraphs 27 through 71 above, the “Insider Transfers”).

COUNT ONE

Avoidance and Recovery of Fraudulent Transfers Pursuant to §§ 548(a)(1)(A) and 550(a) of the Bankruptcy Code

73. Plaintiff restates and realleges paragraphs 1 through 72 of this Complaint as

though fully set forth herein.

74. The Insider Transfers constituted transfers of interests in Canopy’s property.

75. The Insider Transfers were made, mediately or immediately, to or for the benefit

of Defendants who received the Insider Transfers and benefited therefrom as described in this

Complaint.

76. The Insider Transfers were made with the actual intent to hinder, delay, or

defraud Canopy’s creditors.

77. The Trustee may avoid all Insider Transfers made within the two years preceding

the Petition Date pursuant to section 548(a)(1)(A) of the Bankruptcy Code.


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78. The Trustee may recover, for the benefit of the estate, the Insider Transfers or

their value from Defendants that received the Insider Transfers or benefited therefrom as

described in this Complaint, as either (1) the initial transferee of the Insider Transfers or the

entity for whose benefit the Insider Transfers were made, or (2) the immediate or mediate

transferee of such initial transferee pursuant to section 550(a) of the Bankruptcy Code.

WHEREFORE, Plaintiff respectfully requests that the Court enter an Order (a) avoiding

each of the Insider Transfers made within the two years preceding the Petition Date pursuant to

section 548(a)(1)(A) of the Bankruptcy Code; (b) ordering the return and recovery of the Insider

Transfers, or entering judgment against each Defendant pursuant to section 550(a) of the

Bankruptcy Code in the amount of the Insider Transfers made to or for the benefit of each such

Defendant; (c) awarding Plaintiff punitive damages in an amount to be determined by the Court,

pre- and post-judgment interest, costs, and attorneys’ fees and expenses; and (d) granting such

other equitable relief as may be just and proper.

COUNT TWO

Avoidance and Recovery of Fraudulent Transfers Pursuant to 740 ILCS 160/5(a)(1) and 160/8(a), and §§ 544(b)(1) and 550(a) of the Bankruptcy Code






Complaint.


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82. The Insider Transfers were made with the actual intent to hinder, delay, or

defraud Canopy’s creditors within the meaning of section 5 of the Illinois Uniform Fraudulent

Transfer Act (“UFTA”), 740 ILCS 160/1 et seq.

83. A creditor exists that could avoid the Insider Transfers, and could obtain further

relief, pursuant to section 8(a) of the UFTA.

84. Such creditor could obtain a judgment against each Defendant for the value of the

Insider Transfers received as described in this Complaint, as either (1) the first transferee of the

asset or the person for whose benefit the Insider Transfers were made, or (2) a subsequent

transferee, pursuant to section 9(b) of the UFTA.

85. The Trustee may avoid the Insider Transfers pursuant to section 544(b)(1) of the

Bankruptcy Code and may recover, for the benefit of the estate, the Insider Transfers or their

value from Defendants that received the Insider Transfers or benefited therefrom as described in

this Complaint, as either (1) the initial transferee of the Insider Transfers or the entity for whose

benefit the Insider Transfers were made, or (2) the immediate or mediate transferee of such

initial transferee pursuant to section 550(a) of the Bankruptcy Code.


each of the Insider Transfers pursuant to 740 ILCS 160/8(a) and section 544(b)(1) of the

Bankruptcy Code; (b) ordering the return and recovery of the Insider Transfers, or entering

judgment against each Defendant pursuant to section 544(b)(1) and 550(a) of the Bankruptcy

Code in the amount of the Insider Transfers made to or for the benefit of each such Defendant;

(c) awarding Plaintiff punitive damages in an amount to be determined by the Court, pre- and

post-judgment interest, costs, and attorneys’ fees and expenses; and (d) granting such other

equitable relief as may be just and proper.


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COUNT THREE

Avoidance and Recovery of Fraudulent Transfers Pursuant to §§ 548(a)(1)(B) and 550(a) of the Bankruptcy Code






Complaint.

89. Canopy received less than a reasonably equivalent value in exchange for such

Insider Transfers.

90. Canopy was insolvent on the dates that each Insider Transfer was made, or

became insolvent as a result of each of the Insider Transfers.

91. At the time each of the Insider Transfers was made, Canopy was engaged in

business or a transaction, or was about to engage in business or a transaction, for which

Canopy’s remaining property was unreasonably small.

92. At the time each of the Insider Transfers was made, Canopy intended to incur, or

believed that it would incur, debts that would be beyond its ability to pay as such debts matured.

93. The Trustee may avoid all Insider Transfers made within the two years preceding

the Petition Date pursuant to section 548(a)(1)(B) of the Bankruptcy Code.

94. The Trustee may recover, for the benefit of the estate, the Insider Transfers or

their value from Defendants that received the Insider Transfers or benefited therefrom as

described in this Complaint, as either (1) the initial transferee of the Insider Transfers or the


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entity for whose benefit the Insider Transfers were made, or (2) the immediate or mediate

transferee of such initial transferee pursuant to section 550(a) of the Bankruptcy Code.


each of the Insider Transfers made within the two years preceding the Petition Date pursuant to

section 548(a)(1)(B) of the Bankruptcy Code; (b) ordering the return and recovery of the Insider

Transfers, or entering judgment against each Defendant pursuant to section 550(a) of the


Defendant; (c) awarding Plaintiff pre- and post-judgment interest, costs, and attorneys’ fees and

expenses; and (d) granting such other equitable relief as may be just and proper.

COUNT FOUR

Avoidance and Recovery of Fraudulent Transfers Pursuant to 740 ILCS 160/5(a)(2) and 160/8(a), and §§ 544(b)(1) and 550(a) of the Bankruptcy Code






Complaint.

98. The Insider Transfers were made by Canopy without receiving reasonably

equivalent value in exchange.

99. At the time each of the Insider Transfers was made, Canopy was engaged or was

about to engage in a business or transaction for which its remaining assets were unreasonably

small in relation to the business or transaction.


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100. At the time each of the Insider Transfers was made, Canopy intended to incur, or

believed or reasonably should have believed that it would incur, debts beyond its ability to pay as

they came due.

101. An actual creditor exists who could avoid the Insider Transfers, and obtain further















judgment against each Defendant pursuant to section 550(a) of the Bankruptcy Code in the

amount of the Insider Transfers made to or for the benefit of each such Defendant; (c) awarding

Plaintiff pre- and post-judgment interest, costs, and attorneys’ fees and expenses; and

(d) granting such other equitable relief as may be just and proper.


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COUNT FIVE

Avoidance and Recovery of Fraudulent Transfers Pursuant to 740 ILCS 160/6(a) and 160/8(a), and §§ 544(b)(1) and 550(a) of the Bankruptcy Code






Complaint.

107. The Insider Transfers were made by Canopy without receiving reasonably

equivalent value in exchange.

108. Canopy was insolvent at the time each of the Insider Transfers was made, or

became insolvent as a result of each of the Insider Transfers.












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Bankruptcy Code; (b) ordering the return and recovery of the Insider Transfers, or, entering

judgment against each Defendant pursuant to 740 ILCS 160/9(b) and section 550(a) of the




COUNT SIX

Avoidance and Recovery of Preferential Transfers to Insiders Pursuant to §§ 547(b) and 550(a) of the Bankruptcy Code



113. The Insider Transfers that occurred within one year prior to the Petition Date

(“the One Year Insider Transfers”) constituted transfers of interests in Canopy’s property.

114. The One-Year Insider Transfers were made, mediately or immediately, to or for

the benefit of Defendants who received the One-Year Insider Transfers and benefited therefrom

as described in this Complaint.

115. The One-Year Insider Transfers were made on account of antecedent debt owed

by the Debtor before the One-Year Insider Transfers were made.

116. The One-Year Insider Transfers were made while Canopy was insolvent.


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117. At the time of the One-Year Insider Transfers, each Defendant to whom, or for

whose benefit, the One-Year Insider Transfers were made was an “insider” of Canopy within the

meaning of section 101(31) of the Bankruptcy Code.

118. The One-Year Insider Transfers were made within one year before the Petition

Date.

119. The One-Year Insider Transfers enabled each Defendant to receive more than

each Defendant would receive if this case was a case under chapter 7 of the Bankruptcy Code,

the One-Year Insider Transfers had not been made, and each Defendant received payment in

such chapter 7 case to the extent provided by the Bankruptcy Code.

120. The Trustee may avoid the One-Year Insider Transfers pursuant to section 547(b)

of the Bankruptcy Code.

121. The Trustee may recover, for the benefit of the estate, the One-Year Insider

Transfers or their value from Defendants who received the One-Year Insider Transfers and

benefited therefrom as described in this Complaint, as either (1) the initial transferee of the One-

Year Insider Transfers or the entity for whose benefit the One-Year Insider Transfers were made,

or (2) the immediate or mediate transferee of such initial transferee pursuant to section 550(a) of

the Bankruptcy Code.


each of the One-Year Insider Transfers pursuant to section 547(b) of the Bankruptcy Code;

(b) ordering the return and recovery of the One-Year Insider Transfers, or entering judgment

against each Defendant pursuant to section 550(a) of the Bankruptcy Code in the amount of the

One-Year Insider Transfers made to or for the benefit of each such Defendant; (c) awarding the


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Trustee pre- and post-judgment interest, costs, and attorneys’ fees and expenses; and (d) granting

such other equitable relief as may be just and proper.

COUNT SEVEN

Avoidance and Recovery of Preferential Transfers to Insiders Pursuant to the Illinois UFTA, 740 ILCS 160/6(b) and 160/8(a),

and §§ 544(b)(1) and 550(a) of the Bankruptcy Code




of Defendants that received the Insider Transfers or benefited therefrom as described in this

Complaint.

124. The Insider Transfers were made on account of antecedent debts.

125. At the time of each of the Insider Transfers, each recipient was an “insider” of

Canopy within the meaning of the UFTA.

126. Canopy was insolvent at the time each Insider Transfer was made.

127. Each recipient had reasonable cause to believe that Canopy was insolvent at the

time each of the Insider Transfers was made.










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judgment against each Defendant pursuant to 740 ILCS 160/6(b) and section 550(a) of the




COUNT EIGHT

Breach of Fiduciary Duty (Canopy Officers, Directors and Controlling Shareholders)



132. Canopy was insolvent and unable to pay its debts as they came due at all times

relevant to this Complaint.

133. At all times relevant to this Complaint, Defendants were officers, directors, and

controlling shareholders of Canopy.

134. As directors, officers, and controlling shareholders of Canopy, Defendants owed a

duty of loyalty to Canopy and its creditors.

135. As directors, officers, and controlling shareholders of Canopy, Defendants owed

an obligation to act with due care and to deal honestly and fairly with Canopy and its creditors.


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136. Defendants breached their fiduciary duties to Canopy and its creditors by

engaging in the conduct described with particularity in this Complaint, fraudulently authorizing

and directing the Insider Transfers, and by taking other actions that benefited themselves to the

prejudice and detriment of Canopy and its creditors.

137. As a proximate result of Defendants’ breaches of their fiduciary duties, Canopy

has been damaged in an amount exceeding $50 million.

WHEREFORE, Plaintiff respectfully requests that the Court enter judgment in favor of

Plaintiff and against Defendants, jointly and severally, in an amount exceeding $50 million, plus

punitive damages in an amount to be determined by the Court, interest, costs and attorneys’ fees,

and such other equitable relief as may be just and proper.

COUNT NINE

Unjust Enrichment



139. As a result of the numerous breaches of fiduciary duties owing to Canopy and its

creditors, and the fraud perpetuated by them, Defendants wrongfully received direct and indirect

benefits from Canopy that should have inured to the benefit of Canopy and its creditors.

140. Defendants have been unjustly enriched, and equity requires that Defendants

disgorge and pay the amounts by which they have been unjustly enriched.


Plaintiff and against Defendants, jointly and severally, in the amount of all Insider Transfers

(plus interest, costs, and attorneys’ fees), and grant such other equitable relief as may be just and

proper.


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COUNT TEN

Conversion



142. Defendants caused Canopy to transfer millions of dollars to themselves or to third

parties for their benefit as described in this Complaint.

143. The funds transferred constituted funds in which Canopy held an interest.

144. Defendants wrongfully, and with intent, took, retained, and disposed of funds in

which Canopy held an interest. Defendants intended to, and did in fact take, retain, and dispose

of funds in which Canopy held an interest in a manner inconsistent with Canopy’s rights to the

funds.

145. Defendants have wrongfully failed to return the transferred funds.

146. As a direct, proximate, and foreseeable consequence of Defendants’ conversion of

funds in which Canopy held an interest, Canopy sustained loss and injury, including but not

limited to the loss of the funds converted by Defendants.


Plaintiff and against Defendants, jointly and severally, in an amount exceeding $50 million, plus

punitive damages in an amount to be determined by the Court, interest, costs and attorneys’ fees,

and such other equitable relief as may be just and proper.


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COUNT ELEVEN

Equitable Subordination of Claims



148. As set forth above, prior to the Petition Date Defendants engaged in transactions

with or involving Canopy solely for their own benefit and gain, and to the extreme detriment of

Canopy and its creditors.

149. Canopy and its creditors have been damaged in an amount exceeding $50 million

as a proximate and foreseeable result of the conduct of Defendants.

150. As a result of the conduct of Defendants, good cause exists to subordinate

payment of all claims that may be asserted by Defendants to a level below all other creditors.

151. Subordination of Defendants’ claims is not inconsistent with the Bankruptcy

Code.

WHEREFORE, Plaintiff respectfully requests that the Court enter an order subordinating,

pursuant to 11 U.S.C. § 510(c), all claims asserted by Defendants to a level below all other

creditors, and granting such other equitable relief as may be just and proper.

COUNT TWELVE

Disallowance of Claims



153. Canopy’s financial records indicate that one or both of the Defendants may be a

creditor of Canopy.

154. One or both of the Defendants may file in the future proofs of claim in Canopy’s

bankruptcy case.


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155. Defendants have failed to turn over to Plaintiff property of Canopy’s estate that is

recoverable by Plaintiff, namely the amounts demanded in Counts One through Ten above.

156. Pursuant to Section 502(d) of the Bankruptcy Code, each claim asserted by a

Defendant must be disallowed because property of Canopy’s estate is recoverable from each

Defendant and each Defendant has not turned over that property to Plaintiff.

WHEREFORE, Plaintiff respectfully requests that the Court enter an order disallowing

each and every claim that Defendants may assert against Canopy and granting such other

equitable relief as may be just and proper.

COUNT THIRTEEN

Injunctive Relief



158. Plaintiff seeks preliminary and permanent injunctive relief prohibiting and

preventing Banas from making further fraudulent transfers or dissipating any assets received as

Insider Transfers.

159. Without the issuance of an injunction, Plaintiff will suffer irreparable harm and

have no adequate remedy at law because he will be unable to recover those assets for the benefit

of Canopy and its creditors.


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WHEREFORE, Plaintiff respectfully requests that the Court enter an order prohibiting

and preventing Defendant Banas from making further fraudulent transfers or dissipating any

assets received as Insider Transfers and granting such other equitable relief as may be just and

proper.

Dated: March 26, 2010

Respectfully submitted,

Gus A. Paloian, not individually but solely as chapter 7 trustee for Canopy Financial, Inc. By: s/ Vincent E. Lazar

One of his attorneys Vincent E. Lazar Monica R. Pinciak-Madden JENNER & BLOCK LLP 353 North Clark Street Chicago, IL 60654-3456 (312) 222-9350


Case 10-00413 Doc 1-1 Filed 03/26/10 Entered 03/26/10 15:26:50 Desc Exhibit 1 Page 1 of 12

Canopy Financial Adversary Complaint

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Transcript of Canopy Financial Adversary Complaint