A Richlands man has been indicted at the federal level on 38 counts relating to fraud alleged at the healthcare company where he previously served as chief financial officer.
William Robert Canupp, of Catherine Lake Road, was accused of numerous fraudulent actions in a June 2015 auditor investigative report on Eastpointe Human Services, which provides behavioral-health services for 12 counties: Duplin, Bladen, Columbus, Edgecombe, Greene, Lenoir, Nash, Robeson, Sampson, Scotland, Wayne and Wilson, The Daily News previously reported. Canupp was CFO of Eastpointe, which is headquartered in Beulaville.
Canupp was arrested on Dec. 16 by the State Bureau of Investigation on nine charges of financial card fraud and embezzlement, according to previous reports by The Daily News. Attorney Michael Surles was retained to represent Canupp on the charges and said an indictment for those charges has not been returned.
On Wednesday, Canupp and contractor Ronnie L. Davis were indicted on a combined 47 federal charges relating to fraudulent actions, according to a press release from the U.S. Department of Justice, the eastern district of North Carolina.
While the full indictment was not available by deadline, Public Information Office Don Connelly confirmed specific charges relating to Canupp and Davis.
Canupp was indicted on 13 counts of soliciting and accepting a bribe of more than $5,000; 13 counts of organization fraud and aiding and abetting; and one count of engaging in unlawful monetary transactions.
Davis was indicted on 10 counts of paying a bribe of more than $5,000.
Both men were charged with conspiracy to commit federal program fraud and wire fraud along with nine counts of wire fraud.
The new counts will be separate from the original charges brought against Canupp in December, according to SBI Assistant Special Agent in Charge Shannon O’Toole.
The indictment this week is for a federal case against Canupp and Davis.
If convicted, the men face up to five years in prison on the conspiracy charge; up to 10 years in prison for each of 37 of the charges; and up to 20 years for nine of the charges.
The federal case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Dept. of Health and Human Services’ Office of Inspector General and the U.S. Dept. of Housing and Urban Development’s Office of Inspector General, according to the press release.
Key findings in the IRS audit report released last June accused the CFO, who was unnamed in the release, of accepting $547,595 worth of kickbacks from two Eastpointe contractors; using $143,041 to purchase three vehicles without documented business purposes; using $18,600 to purchase equipment for personal use; and spending $157,565 on Eastpointe credit cards for “questionable” purchases.
Canupp was CFO at the time.
The audit also recommended the CEO and area board “improve their oversight” that contributed to operational failures. The CEO, who was not named in the audit, is included along with other unnamed employees in the audit for allegedly contributing to the “questionable purchases” made on the credit cards.
Former Eastpointe CEO Ken Jones retired from his position on April 1 and took on the role of CEO at N.C. Brain Injury Association, the press release stated. Sarah Stroud, who had stepped in as executive vice president and CFO in January, took over as CEO, according to previous board minutes and a press release from Eastpointe.