EAST ST. LOUIS, Ill. (CN) - Amcore Financial misappropriated money from more than 1,000 health savings accounts, according to a federal class action. Named plaintiff Susan Patton claims millions of dollars are missing due to Amcore's alleged failure to prevent commingling of assets and misappropriations, and class members have no access to their accounts because they are frozen due to Amcore's negligence.
Patton bought her health savings account through (nonparty) Canopy Financial and it was administered by Amcore. On Nov. 30, Canopy co-founder Jeremy Blackburn was charged with using fraudulent financial statements to raise $75 million for Canopy. That criminal complaint was filed five days after Canopy filed for bankruptcy, according to the complaint.
"Amcore does not offer and is not a custodian for any health savings accounts, and accordingly we believe claimant's allegations are without merit," Katherine Taylor, Amcore's vice president for corporate communications, said. "Amcore will vigorously defend itself against this claim."
The class consists of all health savings account owners who bought accounts through Canopy for which Amcore is the custodian bank. The class wants a collective trust set up on Amcore's health savings accounts and damages for breach of contract and breach of fiduciary duties. It is represented by Steven Katz with Korein Tillery of St. Louis.
Amcore is the only defendant in this case.
Read the Top 8
Sign up for the Top 8, a roundup of the day's top stories delivered directly to your inbox Monday through Friday.