03/28/2024
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Eastpointe, the agency that manages Behavioral Healthcare for Bladen residents and 11 other area counties, is being scrutinized following reports that their former chief financial officer is accused of taking kickbacks totaling nearly $555,000 and allegedly used over $150,000 in taxpayer funds for personal expenses.
 
The first report of possible irregularities occurred about a year ago when an audit detected irregular activities earlier in 2013.  Eastpointe representatives contacted the district attorney’s office.  That was followed by a meeting with the SBI.
 
The most recent activity is an in depth report from North Carolina Auditor Beth Wood’s office.
 
While not mentioned in preliminary information, the CFO at the time of the irregularities was reported to have been Bob Canupp, who was terminated after working for Eastpointe for 15 years.
 
The recent audit also questioned credit card purchases by Chief Executive Officer Ken Jones.
 
Eastpointe is a government-funded managed care organization responsible for the management and oversight of the state’s public system of mental health, developmental disabilities and substance abuse for Bladen County and 11 others.  The agency operates a budget that exceeds $300 million, employees about 300 and another 500 or more contract providers.  About 70 percent of the budget is supported by Medicaid funds.
 
The CFO reportedly made questionable purchases, many for his personal use and is alleged to have conspired with a former county manager not identified in the report to avoid any annual audit report findings, according to one published report.
 
The audit report by the State Auditor’s office has numerous allegations of wrongdoing and offers suggestions related to recovery the misappropriated money. 
 
Officials of Eastpointe say that despite the misappropriations service to members or providers have not been impacted.  The State Auditors report states, “as a result, the funding available to North Carolina residents in need of mental health or substance abuse services was reduced by a corresponding dollar amount.”
 
The investigation is ongoing and charges are expected.
 
Eastpointe is based in Beulaville, NC.
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