Former Chief Financial Officer Of Company Receiving Federal Funds And Contractor For That Company Charged With Bribery, Fraud, And Other Offenses In 47-Count Indictment
For Immediate Release
U.S. Attorney's Office, Eastern District of North Carolina
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that a federal grand jury in Wilmington returned a 47 count Indictment on Tuesday, May 24, 2016.
The superseding Indictment charged WILLIAM ROBERT CANUPP, the Chief Financial Officer for a company that is the local manager of the public sector behavioral health system for several counties in eastern North Carolina, and RONNIE L DAVIS, a contractor, with Conspiracy, Bribery, Organization Fraud, and Wire Fraud. It also charged CANUPP with money laundering.
If convicted of Count 1 (Conspiracy), the defendants face a maximum imprisonment of 5 years. Each of counts 2-37 and count 47 carries a maximum imprisonment term of 10 years. Each of counts 38-46 carries a maximum imprisonment term of 20 years. The Indictment also seeks forfeiture of proceeds traceable to the offenses charged, including gross proceeds of $577,595.
The charges and allegations contained in the indictment are merely accusations. The defendants are considered innocent unless and until proven guilty in a court of law.
The case is being investigated by the Federal Bureau of Investigation (FBI), the Internal Revenue Service - Criminal Investigation (IRS-CI), the United States of Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the United States Department of Housing and Urban Development, Office of Inspector General (HUD-OIG).
"These allegations are serious because people trusted with the resources to care for others should not use that access to defraud the healthcare system. The FBI will work tirelessly to ensure federal funding is spent in an appropriate and legal manner,” said John Strong, Special Agent in Charge of the FBI in North Carolina.
"As alleged, embezzling hundreds of thousands of taxpayer dollars meant for crucial federal and state programs to include care for mentally ill and developmentally disabled patients just to enrich yourself is a serious betrayal of trust," said Special Agent in Charge Derrick L. Jackson. "HHS/OIG is dedicated to ensuring the integrity of taxpayer-funded programs and we will aggressively pursue executives who steal from vulnerable beneficiaries."
“The theft and subsequent concealment allegedly perpetrated by Canupp and Davis are prime examples of the extraordinary lengths individuals go to in order to steal and launder their ill-gotten gains,” said Thomas J. Holloman, III, Special Agent in Charge, IRS Criminal Investigation. “This indictment contains serious allegations, and IRS Criminal Investigation is committed to the pursuit of such criminal activity, that would harm any business, but in this case one that provides valuable service for those in need.”
“At such a critical time for a Department with programs that are vital to the well-being of the less fortunate in our nation, it is all the more important that those entrusted to public service are completely committed to those in need,” said Nadine E. Gurley, Special Agent in Charge of the Department of Housing and Urban Development Office of Inspector General. “The recipients of our funding deserve honest and efficient service and, in this case, have allegedly been let down by individuals who were supposed to be devoted to their best interests.”
Updated May 25, 2016