Baltimore County has paid $5,161 in taxpayer funds to a collection agency owned by County Executive C. A. Dutch Ruppersberger in what high-ranking county officials are calling an "egregious mistake" and an "actual conflict" between the executive's official duties and private business interests.
The payments were made in the past six months under a program to erase debts of tenants in an aging apartment complex, the Villages of Tall Trees in Essex-Middle River, slated for demolition under a Ruppersberger initiative.
By paying the debts, county officials hoped to clear the way for the tenants to pass credit checks and secure leases with new landlords.
The Sun reported last month that Ruppersberger owned a debt-collection agency, a credit-counseling firm and a company that sells pothole-patching materials, and that decisions he makes as county executive can affect those businesses and their clients.
This year, Ruppersberger placed his business holdings in a blind trust, to avoid the appearance of conflicts of interest.
But the executive acknowledged yesterday that he is considering altering the trust, as well as making other changes in his business practices, in light of the disclosure that Rupp and Associates received county checks.
"This shook me," Ruppersberger said. "I thought I did everything that needed to be done to avoid a conflict. It's funny how things happen in life. I've always done what is in the best interests of the county, and all of a sudden something like this occurs. The good news is we discovered it, and we are taking corrective action."
The executive said he did not believe the payments violated the county ethics code, but added, "If I had known they were in the works, I would have stopped them immediately."
Elise Armacost, a Ruppersberger spokeswoman, said the executive took steps within the past few days to make sure similar mistakes aren't repeated. For example, the finance department has been ordered not to write any more checks to businesses owned wholly or in part by the executive.
"These were actual conflicts, and that can't happen," said Armacost, adding that the payments were "an egregious mistake, an indefensible mistake."
Worker spots check
Officials say they first learned of the payments Thursday, when a staff member in the county land acquisition bureau spotted one of the checks and informed a county attorney. Finance officials then checked their records, and discovered a total of six checks had been written to Rupp and Associates, dating to May.
