Dixon City Council approved a $40-million settlement with auditors and Fifth Third Bank at a special meeting today. The out-of-court settlement was reached on Friday with the companies the city blames for allowing former comptroller Rita Crundwell to embezzle $54-million over twenty years.
The deal was worked out in a 17-hour meeting Friday in Chicago. Former auditor CliftonLarsonAllen will pay $36-million, former auditor Sam Card will pay $1-million, and Fifth Third Bank will pay nearly $3-million. Dixon Mayor Jim Burke says he had to keep the settlement a secret until today, when Dixon City Council approved the deal.
The city is expected to receive another $10-million from the auction of Crundwell's possessions: that amount will just about cover the city's attorneys' fees. Burke says the city plans to go after other assets of Crundwell's, including her share of her family's farm in Dixon.
The city will hold a meeting early next month to update the public on the city's finances and take comments on how people would like to see the recovered money spent.