![]() For small American cities similar to Dixon, lack of sufficient outside audits was a recurring problem, as third-party auditors at best could only give limited attention. However, the city's outside auditors, CliftonLarsonAllen and local accountant Sam Card, dismissed his concerns, as they presumed that Crundwell was honest and signed off on Crundwell's financial statements annually without concern. By the late 2000s, with the financial crisis and economic recession, as city maintenance and equipment suffered, there were some suspicions that she was stealing money, which went as high as Mayor James G. They assumed that either she inherited wealth and/or that her award-winning quarter horse breeding business was profitable in its own right. In the decade prior to Crundwell's arrest, only 65 blocks of road were repaired or replaced.įor most of Crundwell's tenure, residents trusted her despite the city's perilous economic conditions. The city was forced to lay off three of its nine street repair workers and cut the rate of maintenance. The most visible effect, however, was on street maintenance. As a result, employees went two years or more without raises and the police department couldn't get new radios. She forced city departments to make drastic service cuts in order to keep the budget within reason. Among other things, she bought several cars, a second house and a million-dollar motorhome.Ĭrundwell covered up her embezzlement by claiming the city's frequent budget shortfalls were due to the state being late in paying the city its share of tax revenue. She not only used the money to finance her Quarter Horse operation, but also to support a lifestyle well beyond her $80,000 city salary. In 1991, she stole $181,000, while in 2008 alone she managed to embezzle $5.8 million. ![]() On average, Crundwell stole $5 million per year from the city. According to federal investigators, this relatively uncomplicated scheme continued for 22 years. She would have money deposited into another account called the Capital Development Fund, create false state invoices, and then write checks from the fund payable to "Treasurer," which she would deposit into the RSCDA account. That's been our focus over these last years, and we're really happy to get to the place where Dixon is starting to be known for things that are not Rita Crundwell," Arellano said.On DecemCrundwell opened a secret bank account named RSCDA (Reserve Sewer Capital Development Account), making it appear to be a city account. ![]() Since then reforms have changed city government and ushered in more transparency. ![]() "Go find somewhere else to live that's not Dixon, you're not welcome," said Dixon resident Lori Bennett. "I paid good money for this property it's no longer hers."Īs of Thursday morning, the convicted embezzler is either on home confinement or at a residential reentry center. Hit the road," said Rick Humphrey, Crundwell's Nephew. "It's my property - has nothing to do with Rita Crundwell. ![]() Her nephew, who bought it at auction, was confrontational when we started shooting video of the property. Some in Dixon wondered if she might stay with family, perhaps on the farm she once owned. "Over the course of 10 to 20 years, there would have been new businesses coming in as you build out road infrastructure, water, sewer, so really, Dixon lost over $100 million between the public money that she stole and in the private money that would have followed that as investments," Arellano said. He believes Crundwell might have pivoted, seeking her release through the prison system rather than the judicial system.Ĭity leaders said they recovered about $40 million after legal fees, and are now in a much better place, but the long term Crundwell crime impact remains a scar. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |