After James Rupard moved to Stewartsville, North Carolina, he began working for the volunteer fire department.
While there he held positions as captain, treasurer, and eventually became Stewartsville Firefighters Association president. Stewartsville Firefighters Association was a separate, charitable association in charge of collecting and disbursing donations to the fire department.
Rupard opened multiple unauthorized volunteer firefighter checking accounts and one legitimate bank account. To open the bank accounts Rupard went to the bank with the forged signatures of two other firefighters. Due to the small size of the town, the bank was not well versed in fraud detection and did not ask any questions. After opening the bank accounts Rupard would transfer money from the legitimate account into the unauthorized bank accounts and then take the money for personal use. There was also money wired out of the legitimate bank account to Rupard’s ex-wife.
Rupard also operated an insurance business and convinced the board of both, the fire department and the firefighter association, to invest in insurance annuities as an investment in their future. Instead, Rupard purchased the annuities and pocketed the money.
The scheme was discovered when Rupard went to the treasurer, he was no longer treasurer at the time and asked for a reimbursement check after purchasing equipment for the fire department using a personally owned business bank account. After providing the check the treasurer became suspicious because people wouldn’t pay for fire department equipment out of their personal bank account and want it reimbursed. At this point, the treasurer began reviewing everything, went to the bank, and discovered the unauthorized bank accounts and the transaction history. Rupard’s actions were reported to the criminal authorities.
This case shows even a small town should be proactive in learning how to combat fraud. Measures, such as a background check, could have revealed red flags. One red flag was Rupard had a criminal history that included violent crimes and theft. Fraud is able to occur in any situation that presents opportunities, and for the trusting town of Stewartville, North Carolina skepticism and thorough identification was necessary.
Photo by Zion Smith
