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Robert Ray / AP file
In this file photo from May 7, former comptroller for Dixon, Ill., Rita Crundwell leaves federal court in Rockford, Ill.
A former longtime comptroller for Dixon, Ill., pleaded guilty Wednesday morning to a federal fraud charge that claimed she stole more than $53 million from the city's accounts and used it to fund her horse-breeding business and lavish lifestyle.
Rita Crundwell, 59, faces up to 20 years in prison, the Justice Department said in a news release. As part of her plea agreement with the government, Crundwell admitted to one count of wire fraud and engagement in illegal money laundering.
Since 1990, Crundwell allegedly stole more than $53 million from Dixon, where she oversaw public finances as the city comptroller, by diverting it to an account she had set up for personal use, then misleading city officials. She handled all the city's finances from 1983 until her arrest back in April.
Authorities say Crundwell used the money to buy luxury homes and vehicles and spent millions on her horse-breeding operation, RC Quarter Horses LLC, which produced 52 world champions in exhibitions run by the American Quarter Horse Association.
The Justice Department said she will owe restitution to the city of Dixon totaling more than $53.7 million, "minus any credit for funds repaid prior to sentencing."
"Since the outset of this case, we have used every available means, including both criminal and civil forfeiture proceedings, to ensure the recovery of as much money as possible for the City of Dixon, its residents and taxpayers," said Gary S. Shapiro, Acting United States Attorney for the Northern District of Illinois.
Crundwell's attorney Paul Gazianno said his client's guilty plea saved the government a costly and lengthy trial, The Associated Press reported.
"Rita, since the day of her arrest, has worked with the government to accomplish the sale of her assets, including her beloved horses, all with the goal of hoping to recoup the losses for the city of Dixon," Gazianno said, according to the AP.
So far, approximately $7.4 million of Crundwell's assets have been liquidated, including 400 quarter horses, vehicles, trailers, tack and a luxury motor home.
Crundwell's sentencing is set for Feb. 14. She is allowed to remain free until then, the AP reported.
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Dixon, with a population of approximately 15,733, is about 100 miles southwest of Chicago. The town's mayor, James Burke, said Crundwell deserves a long prison sentence, the AP reported.
"We're very happy that she pleaded guilty," Burke said, according to the AP. "There's no feeling sorry for her at all."
Crundwell has pleaded not guilty to 60 separate but related felony theft counts in Lee County, Ill., the AP reported.
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This is a crime in Illinois? I thought they champion corruption, bribes, embezzlement and mob-ties in their "government"? Crap, they just re-elected Jesse Jackson jr. and overwhelmingly supported obama? Why is this woman being targeted? Sounds like a great candidate for Senator from Illinois to me!
C'mon, navyvet, if you're trying to be funny don't give us the punchline at the beginning and drag in the whole glorious history of our state. Try something like:
A former longtime comptroller for Dixon, Ill., pleaded guilty Wednesday morning to a federal fraud charge that claimed she stole more than $53 million from the city's accounts. Fortunately for her, in Illinois this is only considered a misdemeanor.
People like this screw every Illinois resident. Hang her slowly.
She was just horsin' around.
Wow, the Illinois crime spree hits just keep rolling on. Unfortunately in that state this will only make #29 on our count down to the #1.
LOL!! Navyvet--well put. If anything, she is a victim of the liberal war on women. You have to have a pair in order to enjoy such executive privelege in donkyland. Just ask Hilary about the Benghazi debacle.
Dang, you conservatives have a heavy touch. All you really needed to say was: When told about this confession, Rod Blagoevich, the former Democratic Governor of Illinois, said, "This is an outstanding example of equal opportunity for women in our state."
Windy Citizen,
Nice to see you have a sense of humor about it, so many don't! You get a vote up for that alone
If your only other option is to weep hysterically, I guess laughing is the better choice.
If your only other option is to weep hysterically, I guess laughing is the better choice.
If your only other option is to weep hysterically, I guess laughing is the better choice.
Sorry about this, Newsvine had the hiccups!
How does a town that small not end up needing the money at some point???? 57 million of unspent money= being taxed way to high.
and no one noticed her obvious lavishness?
DUH!
they sold her beloved horses - isn't that punishment enough (sarcasm for those with short hair)
Hmmm....A little more than 2 million a year missing from a small town's accounts and no one noticed? Me thinks there are other people involved.
Oh please!!
" the sale of her assets, including her beloved horses."
What a wonderful, compassionate, cooperative woman. Hello? None of those assets were hers. NONE! For 20+ years, she's been living high on the hog, enjoying a lavish lifestyle on the taxpayers' dime. The arrogance of this puke of a woman.
What arrogance? Just business as usual. Is Jesse Jr. a horse lover as well?
fifty three million dollars?! and only twenty years in prison? something doesn't add up.
This woman will do less than five years in prison. She will be sentenced to 6 years and will receive a one year reduction from her federal sentence if she manages to stay out of trouble. Although there is no parole on federal sentences, there are sentence reductions for good behavior. It almost seems like it would be worth it.
No more ear to ear grinning for you, eh?!!