July 1, 2008

Former Bluffton businessman avoids jail time on theft counts but must make full restitution

Former Bluffton businessman Frederick Rupel Jr. was given a chance to redeem himself on Monday afternoon, as he faced Judge Hanselman for sentencing on three charges of theft.

While Rupel was given 18 months jail on each count, with two of the three terms ordered to be served concurrently, with a total of six years of probation, the sentences were all suspended. Rupel must still serve time on probation, but will not go to jail, with Judge Hanselman ruling that giving Rupel the opportunity to make good on his promises to make full restitution was more in the interests of justice than imprisonment.

As co-owner of R & B Farm Store in Bluffton, Rupel found himself charged with a total of 12 charges, as a result of accepting payments totaling more than $130,000 for products from customers, but using the money to pay other business related accounts, rather than sending the money on to the manufacturers of the products.

Rupel’s activities began to come unstuck on Oct. 24, 2006, when Dean Throndsen of Advanced Comfort Technology (ACT) of Reedsburg, Wis. called Sgt. Steve Cale of the Bluffton Police Department to advise that two farmers had contacted him about not receiving ACT products that they had ordered through Rupel.

Throndsen was not a victim himself, and Cale advised him that one of the customers themselves would have to make a complaint with the police.

On Nov. 8, 2006, Cale received a call from Elvin Zimmerman of Greenwich, Ohio, advising he had paid Rupel $5,800 for waterbeds designed for cows to lie down on in May, 2006, but had not received the products.

Other instances began to become apparent as the investigation continued.

When Cale subsequently interviewed Rupel, he admitted that his business was not going well, and that he had been “robbing Peter to pay Paul.” Rupel admitted that he had been backed into a corner (by his business debts) and didn’t know how to get out.

As a result of a plea bargain, Rupel was only required to plead guilty to three of the 12 charges, provided he makes full restitution to all affected by his dealings.

Rupel expressed remorse to the court, his family, and those he had done business with. He stressed that his actions during the period of his offending were not a reflection of his true character, and pointed out that prior to this series of offending, he had not been in legal trouble, and in fact had done a lot of good work with children with disadvantages.

Rupel asked that the charges be reduced from felonies to misdemeanors. He pointed out that he had already made progress towards repaying the money he stole, and vowed to make full restitution as soon as possible.

Judge Hanselman inquired regarding Rupel’s current employment situation and business affairs. Rupel advised that R & B Farm Store has gone into bankruptcy, and he is now involved in a new business enterprise, which is doing well financially and enabling him to make restitution.

Special Prosecutor Kevin Basey (the Blackford County Prosecutor), opposed the reduction of the charges to misdemeanors citing the number of victims and the amount of money involved, and also noting that after his first arrest, Rupel still committed further offenses.

Judge Hanselman noted Rupel’s previously good record, and his willingness to make restitution, but agreed that the magnitude of the offenses did not make it possible to reduce the charges from felony status, at least at this time.

Judge Hanselman sentenced Rupel to 18 months on each of the three counts, with two sentences to be served concurrently, and one to be served consecutively, for a total of three years, but suspended the sentence. He ruled that Rupel will serve six years of probation, and must repay a minimum of $22,500 each year until full restitution has been made to his victims.

In the interests of providing an “incentive” to help Rupel meet his goal of making full restitution to his victims in the shortest possible time, Judge Hanselman did agree that when full restitution has been made, Rupel may request a further hearing at that time, seeking a reduction in the status of the charges.

frank@news-banner.com

Email Frank Shanly

Talk about this story in our forums!