The loan repayment between Dixon's fire chief and Rita Crundwell has been satisfied, with interest compounded, to the satisfaction of the U.S. government. According to Lynzey Donahue, a spokesperson with the U.S. Marshals Service, the money from Timothy and Diane Shipman will be applied "in partial satisfaction to the restitution order issued by the U.S. District Court in United States v. Crundwell."
The repayment, along with other money recently recovered, will be transferred to the city of Dixon.
It was two years ago this week when one of the biggest cases of municipal fraud in U.S. history began to unfold. Former Dixon Comptroller Rita Crundwell was arrested for stealing for more than $50 million from the city. Crundwell is now serving time in federal prison.
In Dixon, city officials continue to implement reforms they hope will prevent similar action in the future.
The U.S. Marshals Service has transferred $9.2 million to the U.S. District Court in the Northern District of Illinois. According to a news release, the money will be applied to the restitution ordered by the court to be paid to the city of Dixon in the Rita Crundwell fraud case.
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.
It's been more than a year since the Rita Crundwell scandal rocked the city of Dixon. The former comptroller is serving a federal prison term for embezzling more than $50-million from city coffers. With court proceedings on the back-burner, the community is debating how to move forward with a form of government aimed at restoring public trust.
The Dixon City Council votes Monday on a credit-card use policy. It comes a month after the resignation of the city's former engineer. He used city-issued credit cards to pay thousands of dollars in personal expenses. He later reimbursed the city for the balance.