• Rita Crundwell case: Guilty plea in theft of $53 million from Illinois city

    Robert Ray / AP file

    In this file photo from May 7, former comptroller for Dixon, Ill., Rita Crundwell leaves federal court in Rockford, Ill.

    By NBC News staff and wire services

    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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  • Rita Crundwell case: Ex-Dixon comptroller to plead guilty to theft of $53 million, US says

    Robert Ray / AP file

    Rita Crundwell, former comptroller for Dixon, Ill., leaves federal court in Rockford, Ill., May 7.

    By NBC News staff and wire services

    A former longtime comptroller for Dixon, Ill., now is expected to plead guilty to charges she stole $53 million from the city’s accounts and used it to fund her renowned horse-breeding business and lavish lifestyle, federal prosecutors say.


    Rita Crundwell is scheduled to enter her new plea on Wednesday morning before U.S. District Judge Philip G. Reinhard in federal Court in Rockford, Ill., the Justice Department said in a news release.

    Crundwell, 59, had pleaded not guilty in May to a single federal count of wire fraud.

    Prosecutors allege that since 1990, Crundwell 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.

    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.

    Wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine.

    The federal case is separate from 60 state theft charges filed against her by prosecutors in Illinois.

    Dixon Mayor Jim Burke said in September that the state charges were a backup plan in case the federal trial fell flat.

    “The way we were pushing this was to get some insurance that if it was a slap on the wrist that there would be more from the state,” Burke was quoted as saying by WQAD.com. 

    More than 400 horses and a luxury motor home once owned by Crundwell have been auctioned off by federal authorities, according to media reports. If Crundwell is convicted, much of the money will be returned to Dixon – after the federal government takes its cut for caring for the horses for months, The Chicago Tribune reported.

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

    The Associated Press contributed to this story.

    Prosecutors allege that for years Rita Crundwell, a champion quarter horse breeder, kept a $53 million secret. Rock Center correspondent Harry Smith reports.

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