Embattled City Treasurer in Torrance Is Hospitalized

Torrance City Treasurer Thomas C. Rupert, under fire for his investment practices, was hospitalized this week for stress-related problems, his deputy said Thursday.

“He will be out of the office for an extended period of time,” said Deputy City Treasurer Linda Barnett. “It could be six weeks, eight weeks. It could be 12 weeks. I just don’t know at this point.”

Barnett said she believes the stress is job-related, adding: “I know this whole issue has been very difficult on him.”

Rupert, 58, was hospitalized Wednesday--city officials did not specify which hospital--just one day after the City Council approved massive changes in how the city invests its money, in reaction to the loss of a $6-million investment.

Those changes include internal controls that increase the number of city officials involved in investment decisions. Previously, Rupert had sole authority for handling the city’s $74-million portfolio, although the council received monthly investment reports.

The City Council made the changes after the disappearance of $6 million of city funds entrusted to Irvine-based investment adviser Steven D. Wymer, who has pleaded not guilty to 30 counts of securities fraud and other charges. Rupert is not suspected of any wrongdoing in connection with the missing $6 million.

It is unclear if Rupert supports the council’s actions, which were devised by city officials in the past month with help from the city’s auditing firm. Rupert did not attend Tuesday’s council meeting.

City Manager LeRoy J. Jackson said he spoke to Rupert Tuesday morning about the meeting agenda, as well as a $1-million city investment, known as AIM 88, that is under review by the city’s auditors, Deloitte & Touche.

At the time, Rupert was not feeling well but still planned to attend the council meeting later in the day, Jackson said.

But Rupert’s wife contacted the city Tuesday afternoon and said her husband was ill and would not be at the meeting, Jackson said. “He hasn’t felt good for a couple of weeks now,” he said.

And, although City Councilman Dan Walker has urged Rupert to voluntarily resign, Barnett said she has no reason to believe that he is considering resignation. “I fully expect him to be back,” Barnett said.

City Personnel Director Elaine Winer said Thursday afternoon that she had not been contacted by Rupert about applying for a medical leave of absence, which can last up to eight months.

Barnett is currently handling city investments, said Assistant City Manager Albert Ng.