Federal Indictment $53 Million Fraud

[TutuTaxi]

<p>

The former comptroller of the city of Dixon, Illinois, Rita A. Crundwell, was indicted today for allegedly fraudulently obtaining more than $53 million from the town since 1990 and using the proceeds to finance her horse breeding business and lavish lifestyle.

Dixon, with a population of approximately 15,733, is located about 100 miles southwest of Chicago.

[FBI</a> — Federal Indictment Charges Former Dixon Comptroller Rita Crundwell with Engaging in $53 Million Fraud Since 1990](<a href=“http://www.fbi.gov/chicago/press-releases/2012/federal-indictment-charges-former-dixon-comptroller-rita-crundwell-with-engaging-in-53-million-fraud-since-1990]FBI”>http://www.fbi.gov/chicago/press-releases/2012/federal-indictment-charges-former-dixon-comptroller-rita-crundwell-with-engaging-in-53-million-fraud-since-1990)</p>

<p>How does a city w/ a population of <16,000 folks have enough revenue that $53 million (even over 20 years) would not be missed?? In a city this small why didn’t Crundwell’s extravagant lifestyle raise questions?</p>

[BCEagle91]

<p>Median household income is around $36K. She took about $2 million/year. It would seem that that should be noticed in a town like that. She had a $2.1 million motor home. How do you spend $2.1 M on a motor home?</p>

[hops_scout]

<p>I was wondering the same thing. In a biggest town I could maybe see it, but I doubt Dixon has that big of a budget to begin with. But it is in Illinois if that tells you anything…</p>

[showmom858]

<p>I heard this woman is very big into quarter horse showing and breeding and that is where she spent a lot of the money. I don’t know why anyone in such a small town did not think it was strange that she lived so large!</p>

[IllinoisMom2006]

<p>The latest from today’s Chicago Trib: [Feds</a> say thefts by Dixon comptroller even worse than first thought – more than $53 million. - chicagotribune.com](<a href=“http://www.chicagotribune.com/news/local/ct-met-dixon-probe-20120502,0,4017241.story]Feds”>http://www.chicagotribune.com/news/local/ct-met-dixon-probe-20120502,0,4017241.story)</p>

<p>She fooled a whole lot of people, including the city’s auditors. Amazing.</p>

[TutuTaxi]

<p>

With more than half of the money stolen in the last six years, the embezzlements grew bolder over time, according to the charges.</p>

<p>“The whole thing is incredible,” Mayor James Burke said Tuesday in a telephone interview. “There’s been five city councils and at least probably three mayors and three finance commissioners in that period of time. … She got by a lot of people.”</p>

<p>Experts have said numerous financial safeguards broke down or simply didn’t exist in the city of just under 16,000. For one, Crundwell had almost complete control over finances, authorities said. She also picked up the city’s mail to keep city officials from learning about the secret bank account she used to funnel herself the money, investigators alleged Tuesday. When she took a vacation, she had a relative handle the chore, they said.

I wonder how many other citys have no safeguards in place to prevent theft.</p>

[ChicagoBear]

<p>FYI - In an interesting aside, Dixon is the boyhood home of President Ronald Reagan. It’s the town where he was a lifeguard.</p>

[BCEagle91]

<p>I’m trying to think if that could happen in my town. Maybe I should start a thread in the town forum.</p>

[xiggi]

<p>I think the government should keep the horses and start Dark Horse Farm. After all, why stop after the success of Goverment Motors? Someone in DC will explain how they made a profit too.</p>

[hops_scout]

<p>I just read one plausible explanation. This lady was apparently responsible for both the incoming and outgoing money. It’s believed that she was telling other city officials that the money missing was just money that the state was late in making routine payments. In Illinois, that’s a real plausible explanation at this point…</p>