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.
Former Dixon Comptroller Rita Crundwell is appealing her federal prison sentence. Earlier this year, Crundwell was sentenced to nearly 20 years behind bars for stealing millions of dollars from the city.
Lee County prosecutors have dismissed state charges against Rita Crundwell, the former Dixon comptroller who is serving a federal prison sentence for stealing more than $50-million dollars from the city. The decision regarding the state's case was approved by a judge during a brief hearing Tuesday.