ROCKFORD – Longtime Dixon Comptroller Rita A. Crundwell is free on a $4,500 recognizance bond, prohibited from selling any horses or other property while her wire fraud case proceeds in federal court, a judge ruled this afternoon.
Crundwell, who has horse ranches in Dixon and Beloit, Wis., can travel in northern Illinois and to her Wisconsin property, U.S. District Court Judge Michael Mahoney said. She also must surrender her state Firearm Owner's Identification card.
Crundwell, 58, was arrested Tuesday morning at City Hall and charged with a single count of wire fraud. She is accused of defrauding the city by wiring $175,000 in city funds from a bank in St. Paul, Minn. to a bank in Cincinnati for her own use in November.
In an affidavit filed in support of the charge, federal agents say Crundwell misappropriated more than $30 million in city funds since 2006 to finance her own "lavish lifestyle."
Agents raided Crundwell's Dixon home, both horse properties and City Hall on Tuesday, presumably looking for evidence of misdeeds, and confiscated several vehicles, including a $2.1 million motor home.
Crundwell has handled the city's finances since the early 1980s. At a news conference earlier today, Mayor Jim Burke said Crundwell will be placed on administrative leave without pay, pending a vote by the council.
She has a status hearing scheduled for May 7.
ROCKFORD — The Comptroller for the City of Dixon, Ill., was
arrested today by FBI agents on a federal charge for allegedly defrauding the
City of Dixon of more than $3.2 million in public funds since just last fall. In addition, a federal criminal
complaint alleges that the defendant, Rita A. Crundwell, 58, of Dixon, has misappropriated
more than $30 million in city funds since 2006 to finance her own lavish
lifestyle, including operating a horse farm.
Crundwell handles all finances for the city and has held the
appointed position of Dixon comptroller since the early 1980s. She is paid an annual salary of
$80,000, according to the complaint charging her with one count of wire fraud
that was filed last Friday and unsealed today following her arrest.
Also today, agents executed search and seizure warrants at
various locations including, Crundwell’s home, office, and farms in Dixon and
Beloit, Wis., and seized the contents of two bank accounts she controlled. Among other items seized were seven
trucks and trailers, three pickup trucks, a $2.1 million motor home, and a Ford
Thunderbird convertible, all of which were allegedly purchased with illegal
Crundwell is scheduled to appear at 3 p.m. today (Tuesday) before U.S.
Magistrate Judge P. Michael Mahoney in U.S. District Court in Rockford, where
the issue of bond will be addressed. Dixon has a population of approximately 15,733 and is located
in Lee County, about 42 miles southwest of Rockford. The arrest was announced
by Patrick J. Fitzgerald, United States Attorney for the Northern District of
Illinois, and Robert D. Grant, Special Agent-In-Charge of the Chicago Office of
the Federal Bureau of Investigation.
Dixon Mayor James Burke reported Crundwell to law
enforcement authorities last fall after a city employee assumed Crundwell’s
duties during Crundwell’s extended unpaid vacation. After reviewing bank statements for September 2011 through
March 2012, the FBI expanded the investigation and began reviewing the city’s
finances dating back to 2006. The investigation is continuing, officials said.
According to the complaint, Crundwell receives four weeks of
paid vacation annually and she took an additional 12 weeks of unpaid vacation
in 2011. In October last year,
while Crundwell was away from work, a Dixon employee who served as her
replacement requested all of the city’s bank statements. After reviewing them, the employee
brought the records of a particular account to Mayor Burke’s attention. The September 2011 statement for that
account showed three deposits totaling $785,000, as well as 84 checks drawn
totaling $360,493, and 40 withdrawals totaling $266,605. Mayor Burke was unaware that this
account existed, the complaint states, adding that he then went to law
enforcement since none of the withdrawals appeared to be related to any
legitimate business of the City of Dixon. Although the bank records show that the primary account
holder is the City of Dixon, a joint account holder is listed as RSCDA, and the
checks written on this account list the account holder as “R.S.C.D.A., C/O Rita
The City of Dixon maintains numerous bank accounts,
including a Capital Development Fund. Between September 2011 and February 2012,
approximately $2,783,912 in various tax funds were electronically deposited
into one of the City’s accounts. Crundwell
allegedly caused these funds to be moved around to other bank accounts held by
the city, and eventually transferred most of these monies into the Capital
Development Fund account. Between
September 2011 and March 2012, in her capacity as comptroller, Crundwell wrote
19 checks totaling $3,558,000 on the Capital Development Fund account payable
to “Treasurer,” and deposited these checks into the account listing RSCDA as
the joint account holder. She then
allegedly took $3,311,860 from the RSCDA account by checks and online withdrawals,
using only $74,274 for the city’s operations. Crundwell allegedly used the remainder of those funds, more
than $3.2 million, for her own personal and business expenses, including
approximately $450,000 relating to her horse farming operations, $600,000 in
online credit card payments, and $67,000 to purchase a 2012 Chevy Silverado
After discovering that Crundwell allegedly had recently
transferred $3,558,000 in city funds to the RSCDA account, the FBI obtained
additional bank records showing that between July 2006 and March 2012,
Crundwell allegedly deposited a total of $30,236,503 in city funds into the
RSCDA account, and paid out more than $30 million for her own personal and
business expenses. The complaint
alleges that she used fraudulently obtained funds to make additional purchases,
includinga 2009 Liberty Coach Motor Home for $2,108,000, a 2009 Kenworth T800
Tractor Truck for $146,787, a 2009 Freightliner Truck for $140,000, a 2009
Chevrolet Silverado pickup truck for $56,646, and a 2009 Featherlite Horse
Trailer for $258,698. Between
January of 2007 and March of 2012, Crundwell incurred charges of more than $2.5
million on her personal American Express credit card account, including more
than $339,000 on jewelry alone, and allegedly used Dixon funds to pay the
entire amount of charges.
Wire fraud carries a maximum penalty of 20 years in prison,
and a $250,000 fine, or an alternate fine totaling twice the loss or twice the
gain, whichever is greater. If
convicted, the Court must impose a reasonable sentence under federal statutes
and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney
Joseph C. Pedersen. The public is
reminded that a criminal complaint is only a charge and is not evidence of
guilt. The defendant is presumed
innocent and is entitled to an indictment by a federal grand jury and a fair
trial at which the government has the burden of proving her guilt beyond a
do the same as dixon. look at ALL the records top to bottom. imagine how much fraud would be uncovered? if you're in position to check the records, do it! you may put an end to a similar situation in your town.
Not really such a big deal now that I know she spent 30 million doing it.
A trained monkey could win 52 World Championship titles with 30 million dollars!!! I think maybe a trained monkey could do it with just 20 million!!
So...it's okay to STEAL other people's hard earned money to buy horses & pay trainers & acquire World Championships? Okay, maybe we need to all wait for the verdict, but both NSBA & AQHA all need to make a statement NOW & adopt a policy regarding criminals & how their accomplishments will be recognized once a CRIME has been commited & a guilty verdict reached. The Olympic Committee strips Medals from athletes who cheat. Our honorable horse show associations need to do the same or it severely cheapens the honor of the award. Anyone can win if you have enough money to buy it. And if the money is stolen, it makes winning a crime.
To everyone who feels sorry for Rita because she has given so much to AQHA, to individual shows, and to people. Just remember it was all with stolen money. It is easy to give away other people's money. You shouldn't be thanking her for her contributions to the horse industry you should be thanking the people of Dixon, Illinois who have lost their homes because of increased taxes and lost their jobs because of budget cuts. It is so disgusting how people are saying she has given so much to the industry. She has given nothing!!!! Only the people of Dixon, Illinois have given to the industry!!!
Someone posted on her fb that even if she did it, it doesn't make her a bad person.....YES IT DOES! This is a bad person, selfish, inconsiderate, egomanic that doesn't and didn't care about others. Everything was done for herself and her to feed her massive ego. People last jobs and a town went without because of her actions. She is a bad person.
I live in Dixon and do you know what's the saddest thing about this is. That we have been fighting for years to get the repairs done to a historical pool. A town of 16000 and we have no public pool. The reason we have been denied is there is not enough money for the repairs, maybe next year.
"get real Guys some of you need to get over yourselves...one person who had some really nice horses beat you. You can not take away her breeding program. I was fortunate enough to buy some horses from her and we were fortunate enough to win with them. Most of her really good ones came from her breeding program. Instead of trash talking you need to pray for the people of Dixon and for Rita."
Pray for Rita for ripping taxpayers off. R U serious? I think Rita is the one that needs to get over herself. Her breeding program was funded by fraud. It's tainted now. Live with it and put an asterisk by it.
Check out her showing habits in the nineties. The upswing in horses hauled and locations gone to suggest a much bigger cash commitment was required. All things being equal: lower pay balanced by lower cost of trucks, feed, entry fees etc. the upsurge in funds for horse showing still are questionable. Rita was not one to pack peanut butter sandwiches to keep her costs down when she went to shows.
This is a real tragedy for the people of Dixon, who have lost teachers, peace officers, firefighters, and other key essential services to a woman bent on pursuing pieces of ribbon at horse shows.