Small Town’s Big Scandal: Illinois’ Chief Financial Officer Arrested for Stealing Millions!

Small Town’s Big Scandal: Illinois’ Chief Financial Officer Arrested for Stealing Millions!

Rita Crundwell, the chief financial officer of Dixon, Illinois was arrested by FBI agents and charged with stealing the city of $3.2 million and misappropriating another $30 million in city funds.

The arrest of Rita Crundwell has shaken the northwest Illinois town, which has a population of not more than 16,000.  Authorities contend that Crundwell stole the funds to support her luxurious lifestyle over six years.

The financial officer, an award-winning quarter horse breeder, spent the money on jewelry, a motor home, and her horse farms in Wisconsin, reports the Tribune.

Federal agents confiscated the contents of her two bank accounts, three pickups, seven trucks and trailers, a $2.1 million motor home, and a Ford Thunderbird convertible -- all of which were purchased with illegal earnings, according to the federal reports.

To determine how the alleged small town’s big time scandal occurred, the city will hire private investigators.

The mayor initially reported Crundwell, 58, to federal authorities last fall, after colleague had assumed her job while she was on an extended unpaid vacation, authorities said.

Crundwell transferred city funds into multiple accounts, which includes a joint account for the city of Dixon and herself, according to federal authorities. She then withdrew $3.3 million from the account, but using only $74,274 for city operations.

After reviewing bank statements for September 2011 through March 2012, the FBI expanded its investigation, and discovered from July 2006 to March 2012 that she deposited more than $30 million into the joint account. She reportedly then spent more than $30 million for her own personal and business expenses.

Rita Crundwell had earned an annual salary of $80,000.

Posted by James Fried on Friday April 20 2012, 2:33 AM EDT. Ref: CNN. All trademarks acknowledged. Filed under Featured News, Nation. Comments and Trackbacks closed. Follow responses: RSS 2.0