This case of fraud is so astonishing it has earned its own Wikipedia page.
Investigators believe it all began back in 1991. Rita Crundwell, the city comptroller from Dixon, Illinois, began siphoning off funds into her own secret bank account. She used these stolen funds to purchase a vacation home in the sunny state of Florida, one very custom made $2 million RV (see photo), and to build, maintain, and operate her own world-class horse breeding farm (at the time of arrest included 400 horses).
One might think her salary from a small town might also be small, but she actually had an annual salary of $80,000. In the end investigators were able to track down a whopping $53 million stolen from city accounts. She stole a rough estimate of $3,000 from every person in that town. Why was she able to justify this theft, when she already had a phenomenal annual income? Even more astounding, how was she about to get away with this for nearly 20 years?
Local Mayor, James Burke claimed, "There were no red flags that we were able to, or did notice here at City Hall". However, it seems to me it might be a little difficult to ignore the fact that your colleague is running a world class horse breeding farm, and your city accounts are running low, with service cuts being forced year after year. How was she caught?
Rita Crundwell never took any vacation days. She would always pick up the mail at the post office, and if she pick up the mail herself, she would arrange for a family member to do so. This way, she was the only person reviewing the bank statements. Rita also made up fake invoices from her fake company (RSCDA - Reserve Sewer Development Account) disguised to be serving the city. This way she could send out city funds to herself.
In October of 2011 she was forced to take an unexpected unpaid vacation, and her temporary replacement found discrepancies. Her temporary replacement, Kathe Swanson, discovered the RSCDA account and all the checks that went along with it. These discrepancies and suspicions were taken to her boss, and the FBI was subsequently contacted for further investigation. Rita Crundwell pleaded guilty to wire fraud in federal court in November of 2012, nearly one year after investigations started.
During the 22 years of her theft the townspeople had suffered numerous dramatic service cuts because of "budget shortfalls". Prior to the year 2000, many of the locals believed Rita's horse farm was profitable all on its own, and that Rita was enjoying an inherited fortune. However, after the economic recession began, and she was still prospering, rumors begin swirling and many townspeople believed she was definitely stealing city money. Independent auditors still signed her financial statements and assured the townspeople no such theft was taking place. (Later sued by Dixon, winning a $40 million settlement.)
After the initial arrest, the city's operational budget was off by $16.6 million, and it was also reported that Dixon lost nearly $30 million in operating funds over the previous 10 years while Rita was an employee. More than enough to avoid the dramatic service cuts the town had suffered. Rita was sentenced to 19 years and 7 months in prison, under the 20 year maximum sentence. Many believe she should have earned life in prison because of the harm she caused to so many people.
Investigators believe it all began back in 1991. Rita Crundwell, the city comptroller from Dixon, Illinois, began siphoning off funds into her own secret bank account. She used these stolen funds to purchase a vacation home in the sunny state of Florida, one very custom made $2 million RV (see photo), and to build, maintain, and operate her own world-class horse breeding farm (at the time of arrest included 400 horses).
One might think her salary from a small town might also be small, but she actually had an annual salary of $80,000. In the end investigators were able to track down a whopping $53 million stolen from city accounts. She stole a rough estimate of $3,000 from every person in that town. Why was she able to justify this theft, when she already had a phenomenal annual income? Even more astounding, how was she about to get away with this for nearly 20 years?
Local Mayor, James Burke claimed, "There were no red flags that we were able to, or did notice here at City Hall". However, it seems to me it might be a little difficult to ignore the fact that your colleague is running a world class horse breeding farm, and your city accounts are running low, with service cuts being forced year after year. How was she caught?
Rita Crundwell never took any vacation days. She would always pick up the mail at the post office, and if she pick up the mail herself, she would arrange for a family member to do so. This way, she was the only person reviewing the bank statements. Rita also made up fake invoices from her fake company (RSCDA - Reserve Sewer Development Account) disguised to be serving the city. This way she could send out city funds to herself.
In October of 2011 she was forced to take an unexpected unpaid vacation, and her temporary replacement found discrepancies. Her temporary replacement, Kathe Swanson, discovered the RSCDA account and all the checks that went along with it. These discrepancies and suspicions were taken to her boss, and the FBI was subsequently contacted for further investigation. Rita Crundwell pleaded guilty to wire fraud in federal court in November of 2012, nearly one year after investigations started.
During the 22 years of her theft the townspeople had suffered numerous dramatic service cuts because of "budget shortfalls". Prior to the year 2000, many of the locals believed Rita's horse farm was profitable all on its own, and that Rita was enjoying an inherited fortune. However, after the economic recession began, and she was still prospering, rumors begin swirling and many townspeople believed she was definitely stealing city money. Independent auditors still signed her financial statements and assured the townspeople no such theft was taking place. (Later sued by Dixon, winning a $40 million settlement.)
After the initial arrest, the city's operational budget was off by $16.6 million, and it was also reported that Dixon lost nearly $30 million in operating funds over the previous 10 years while Rita was an employee. More than enough to avoid the dramatic service cuts the town had suffered. Rita was sentenced to 19 years and 7 months in prison, under the 20 year maximum sentence. Many believe she should have earned life in prison because of the harm she caused to so many people.
RSS Feed
