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What WE NEED TO KNOW about Shane Rapp

January, 2020  // Shane Rapp

Comal County Constable Shane Rapp caught providing false financial statements, nepotism, using his office for personal gain, state and federal securities violations.

Texas seems to attract some real winners when it comes to the constable office.  Not to say they are all bad but there are a few that are embarrassing the state.

September 23, 2019 Bexar County Constable Precinct 2 was raided by FBI and Texas rangers.  Looks Like Shane Rapp of Comal County Precinct 4 is next!  It took officials 33 months to investigate the Bexar county Constable before she was removed from office.  Authorities are deep into the Rapp investigation, but Shane is up for re-election in just a few weeks.  What happens when he is charged and removed?

First the story. 

Rapp was a dispatcher for the Comal County Sheriff’s Department in the past.  He has become a reserve deputy constable over 20 years ago and then fell into the elected position when the current precinct 4 constable was forced to run in another precinct due to a change in districting.

Shane fancied himself as a great salesman and decided to use his newly elected position to open some doors.  At that time Shane Rapp was living with another man, Russell Chaney.  Shane Rapp and Russel had some prior success together when they developed and sold a software company that was later used as a tool for eBay motors.  In March of 2004 Chaney began developing a software concept for police departments called COPsync to provide real time information sharing from within the police vehicle.  He just needed a way to open doors so that he could sell his product to Police Chiefs and Sheriff’s across the state.  The solution? Fund Shane Rapp’s campaign and get him elected as constable, make him partner in the new business and doors would open!  It worked!  Shane beat out two candidates that were better qualified for the position and then hired Chaney as one of his deputies.  For Shane to beat the front runner in the primary, Doug Dunlap, he had to promise the Chief Deputy position to his other opponent, Alan Svoboda.

Seems that plan worked, at least the doors were opened.  Shane Rapp and Russell Chaney were able to peddle COPsync to police departments across the state.  Shane Rapp took advantage of the constable’s office budget to attend “training events” across the state and used those events to mingle and network with other agencies so he could sell his product.  The company was soon touted as the biggest and best of its kind in the nation.  Problem is that neither Rapp nor Chaney had the proper management skills to run a business or even to know who to hire.  The company was in debt from day one and soon was borrowing money at 35% interest to stay afloat. 

So, what to do about a company that looks successful, but isn’t? Take it public!

Gather up over 10 million dollars from local investors, cops, deputies and anyone who they could convince to move their retirement account over to a public offering.  Here is where Shane Rapp proved his sales skills.  With the help of some fraudulent financial statements Rapp hit the phones in November of 2015.  Promising big returns on investments and even personal guarantees in writing that investors would not, could not, lose their money.  After collecting over 10 million dollars from local investors and those willing to risk their retirement account, COPsync went public, lost value from day one and then declared bankruptcy on September 29th, 2017.  Everyone lost their money, except Chaney and Shane Rapp and a few friends and family members that were taken care of.

Shane Rapp has claimed to be a victim of the system and even placed a personal claim to the bankruptcy court in an attempt to recover salary that he claims is owed to him by the company.  He is still willing to put himself in front of all the unpaid employees and those that lost their retirement accounts and investments.  Even his Chief Deputy, Svoboda lost over $100,000 to Shane Rapp.  How did Rapp take care of his Chief deputy?  He terminated his position at the Constable’s Office without cause.  Now that Deputy, who devoted over 15 years to the Constable’s Office will be forced to work into his late 80’s to recover the retirement money he lost to Shane Rapp.

Can he beat the Rapp?

In an interesting twist, COPsync was purchased out of bankruptcy by Kologik, a company that had operating agreements with COPsync during the time that Shane Rapp and Russel Chaney owned the company.  Kologik has decided to market the COPsync product under the same name.  In 2018 things started to unravel for Shane Rapp in a big way. Kologik is a real company and understands how to access risk Kologik assigned a legal team to investigate the downfall of the company and the reasons for bankruptcy.  What they found was a treasure trove for any state or federal investigator.   When Kologik discovered a prior insurance policy that included errors and omissions made by Rapp and Chaney they realized the obligation to inform the insurance company of the potential claim. That same letter was then filed with the US bankruptcy Court, making it public information.  Any good investigator will wrap that letter up, along with the investigation completed by the Kologik (Now COPsync) legal department and wala! Shane Rapp is going to jail! Comal County will suffer the same embarrassment that Bexar county did when their constable was caught red handed, except that Rapp appears to be a much more solid case with many more victims.

Legal findings

There are three letters that were files with the US Bankruptcy court on April 30, 2018 (https://www.docketbird.com/court-documents/COPsync-Inc/Exhibit-C/laeb-2:2017-bk-12625-00216-003)

 

In summary the findings were:

From the Desk of

Danielle Pellegrin

Chief Legal Officer

M (504) 315-8989    dpellegrin@cs-bankruptcy.com

Most egregious actions are highlighted in the summary below.

Names Russell Chaney and Shane Rapp, as well as other executives, as responsible for the following wrongful acts:

  • Failure to implement, maintain, and oversee appropriate financial controls and accounting, including, but not limited to, ensuring timely collection of receivables;
  • Causing COPsync to enter into contracts and transactions with persons related to or affiliated with officers and directors of COPsync;
  • Issuing false or misleading financial statements and information;
  • Failure to install management having the knowledge, competency, and expertise necessary to discharge their respective duties and obligation and gross mismanagement of the Debtor;
  • Manipulating and misstating COPsync’s financial statements and reports to overstate assets and profitability;
  • Undertaking contractual obligations that officers and directors knew or should have known COPsync could not perform including sales agreements for products the company did not offer and never developed, and exposing the company to claims for substantial damages;
  • Undertaking contractual obligations that officers and directors knew or should have known would not provide any economic benefit to the company;
  • Waste and diversion of assets;
  • Failure to undertake any meaningful efforts to restructure as COPsync entered the zone of insolvency;
  • Retaining employees on the basis of nepotism and employing persons related to officers and directors who received compensation but provided no corresponding services;
  • Possibly violating provisions of federal and state law including the Securities Act, Securities Exchange Act, Rule 10b-5 of the Securities and Exchange Commission, and Rules of state securities regulations on self-regulatory organizations.
  • Failure to warn obligations to employees and incurring related liabilities to these employees and United States Department of Labor.

COPsync’s officers and directors, and each of them, breached their duties of good faith, care, and loyalty by mismanaging or interfering the bidding process for the sale of COPsync’s officers and directors, and each of them, breached their duties of good faith, care, and loyalty by actively engaging in and/or negligently failing to prevent COPsync from engaging in improper and wasteful business practices, including, but not limited to, securing accommodations from vendors and/or payees by promising future equity transfers.

COPsync believes the above-referenced events, as well as other acts and omissions, constitute Wrongful Acts under the Policy, and therefore give rise to Claims by the Debtor and its bankruptcy estate against the officers and directors. These Claims include, but are not limited to, the following causes of action: (1) breach of the fiduciary duties of care, loyalty, and good faith; (2) aiding and abetting breach of such fiduciary duties; (3) usurpation of corporate opportunity; (4) corporate waste and (5) any and all claims which may be asserted under Chapter 5 of the United States Bankruptcy Code.

COPsync further gives notice that various acts and omissions of officers and directors constituting Wrongful Acts may give rise to claims, demands and causes of action by persons who acquired securities issued by the Debtor including without limitation, claims asserting violations of provisions of various State Blue Sky Laws, the Securities Act, the Securities Exchange Act, and rules and regulations of the Securities and Exchange Commission, state securities regulators, and self-regulatory organizations.

Please be advised that the Debtor’s analysis of acts and omissions constituting Wrongful Acts is in a preliminary stage and has been handicapped by the facts that (i) most employees, officers, and directors have terminated any relationship with the Debtor; (ii) current management of COPsync has only been in place for the past few months and has been principally focused on planning and conducting the Chapter 11 case; and (iii) the press of other obligations as debtor in possession has substantially impaired the Debtor’s ability to conduct a comprehensive investigation of possible Wrongful Act. The analysis is continuing and COPsync expressly reserves the right to amend and supplement this Notice.

Rapp put on notice

Here is where the story goes from incompetent to criminal to morally bankrupt

Based upon the investigation, Rapp knew or should have known that what he was doing was very wrong.  At the very least, he knew that the was not being honest with his friends and neighbors when he was peddling the idea of investing their money into a company that he knew was likely to fail and certainly knew that the company had never seen financial  success up to that point.  If Shane Rapp claims ignorance on these issues, he’s not worthy of an elected position.  If he admits to knowledge of these wrongdoings, he should be thrown in jail.

There is an integrity issue that he should explain to all.  Shane Rapp received copies of these letters from the legal counsel in March of 2008.  It clearly states that there is a potential claim for those investors who lost their savings and retirement.  If Shane Rapp had any moral compass, he would have immediately contacted these people and urged them to place a claim against the multimillion dollar insurance policy before any timelines would preclude the claim.  Shane Rapp chose to sit on the information and allow people to continue suffering their financial loss, why?  It seems that the insurance claim would only be mandated to come into play when and if Shane Rapp and/or the other executives are charged with a crime or sued in a civil case.  So, Shane chose to protect himself at the expense of all others.

 

No Lessons learned by Rapp

After watching his relationship with Chaney fall apart, seeing COPsync go up in flames and getting slapped in the face by the legal department you would think that Shane Rapp would resign his position as Constable and slip away into the night for a while until things cool off, not the case!  Instead, he is choosing to repeat the same actions again.   After COPsync failed and he fired his Chief Deputy he immediately hired a new Chief Deputy, Brandon Roberts. Just happens that the two of them are in business together attempting to start up another company that is centered around law enforcement and will need their positions to open doors.

After living with Chaney for most of his adult life Rapp and Chaney finally had a falling out and Rapp started dating, and then married a local real estate agent, Leslie Martz. Leslie Martz is the same woman who was said to have embezzled money from a nonprofit organization in Canyon lake Texas, Operation K-9.   Now Martz, Rapp and Chief Deputy Roberts have formed a new company called Peacemaker Technology where they are attempting to peddle hardware to law enforcement agencies via the internet.  Once again Shane has learned no lessons, he is using the Comal County Constable’s vehicle as part of the advertisement for the Peacemaker Technology website.    The website even features a video of his chief Deputy promoting the product.  https://www.facebook.com/peacemakertechnologies/videos/579395512814845/

Comal County patrol Vehicle as seen advertising the Peacemaker Technology Facebook site.

Common sense questions for Shane

There is an advantage to Shane Rapp running for re-election as constable, he will be in a public venue and can be confronted with some of these issues.  There are some questions that I believe the citizens of Comal County need answered. So, Shane, answer this please, your answers will be posted.

  1. Why didn’t you tell the investors that there is an insurance policy that might allow them to recover some or all the money they lost?
  2. Why didn’t you warn the employees of COPsync about the impending doom of the company, knowing that they had not been paid and would not be paid?
  3. Why did you hire Russell Chaney as a Deputy Constable? You were aware of the nepotism laws and moral issues involved with hiring someone that you have a personal relationship with and lived with as an adult man for more than 15 years.  This is not an admonishment of your sexuality; it is an admonishment of the decision you made to bring your personal life into the Constable’s Office.
  4. How can you claim to be a successful businessman if your company never turned a profit, used high interest loans and lost over 10 million dollars of investors money in less than two years?
  5. How do you serve two masters? You have bragged about the companies that you have built over the past 15 years, during the same time you were being paid to be a Constable?  Several people who work in Comal County have stated that you often worked less than 1 hour per week for the Constable’s Office, devoting your time to your other adventures.
  6. Why did you dismiss your Chief deputy of 15 years and then hire your new business partner, Brandon Roberts, as your Chief deputy?
  7. Who conducted the background investigation on Brandon Roberts?
  8. Why are you using County assets and County budget to promote your private company adventures?

Shane touting his loyalty to OU

There is a trove of information available about Shane Rapp and the downfall of COPsync.  Most information can be easily discovered with a google search of COPsync and Rapp.

As far as the reports of other misconduct, we are still looking into several more.  I have heard reports of sexual misconduct lawsuits that were settled in confidence to protect Shane Rapp.  Investigations made by the Texas rangers into his misconduct, Investigations that are ongoing by the FBI, Firearms that were taken from citizens and are now unaccounted for, and the list goes on.

If you have additional information about Shane, share it.  If it can be substantiated it will be posted here.  Email me at rapplove@protonmail.com

January 21, 2020

Since posting our website we have been flooded with communications with fellow Comal County citizens about experiences they have had with Shane. Most of those experiences match ours.

Shane, we invite you to email us at rapplove@protonmail.com, please answer the questions we have. If you do that, we will not only be happy to reveal ourselves, but we will be happy to remove this website as well.

While you are answering our questions, maybe you can answer questions from one of our fellow constituents who wrote this to us (we blacked out names to protect):

To whom it may concern,

I am writing in hopes to find someone not afraid of Shane Rapp and other city officials.  There is said to be an underground car auction ring, operated and stocked by Shane Rapp. Rumors are a waste of time correct? What if there is evidence of foul play that would support the rumor? ***** ******, a 67-year-old widow living in Comal, her late husband was ****** ******. A man who dedicated more than 25 years of his life to serving our country. ***** was pulled over by Rapp for speeding. During the pullover, he found illegal substances in her purse (the substance was a prescription medication that was prescribed to her husband), even though the laws for Comal officers’ states they are to have full audio and video at all time, the first part of the pull over was not recorded, Rapp said his camera had malfunctioned. It isn’t until another officer shows up on scene that we get a glimpse at the unlawful acts of the Constable. ***** was asked 9 times if she owned her car or if the bank owned it. 9 times, I don’t see the point of asking that question one time, let alone 9. ***** had purchased her car from Toyota outright. No lease, no finance, she and her husband owned the vehicle. After assuring the officers almost a dozen times that she owned the car, she was arrested and hauled off to jail. ****** was to go to the doctor once a week every week, for the next few months, however the only means of transportation was being held by Comal County. I believe there is a hard ship law that says, the state cannot seize your vehicle if it is the ONLY family car, and it would cause hardship for the family. ****** was found dead in his bedroom floor, only a few weeks later because he was not able to get to the doctor, he had a heart attack. There are witness that heard Rapp at the VFW gloating on how he has another car for his collection, “I told you I would get that car, and I always do what I say”  Even though she had never been in trouble before, they refused to release her car, a few years later she received a letter in the mail offering to sell her the Toyota for $7,000! None of this makes sense. And this is not the only case, Rapp seized 2 vehicles from this family. And many others. Now it has been almost 6 years, and she has not had her day in court. I hope this information lands in the hands of someone who wants the officials governing our town to be honest citizens. And you can shed some light. At least help get this information out to the public, so no more families fall victim to Rapp.

H.R. 1658 (106th): Civil Asset Forfeiture Reform Act of 2000

‘(f) RELEASE OF SEIZED PROPERTY-

‘(1) A claimant under subsection (a) is entitled to immediate release of seized property if–

‘(A) the claimant has a possessory interest in the property;

‘(B) the claimant has sufficient ties to the community to provide assurance that the property will be available at the time of the trial;

‘(C) the continued possession by the Government pending the final disposition of forfeiture proceedings will cause substantial hardship to the claimant, such as preventing the functioning of a business, preventing an individual from working, or leaving an individual homeless;