Thursday, April 19, 2012

Illinois small city comptroller busted, embezzlement


This one skipped scrutiny for a while.  Dixon, Illinois population 15,000, vanishing money $33 million. Some cities are worse-off than Pacifica.  "I have heard Pacifica has many accounts that the public is not aware of. I'm not saying there is a problem, but there should be more transparency." (Robert Hutchinson)

No more horsing around, maybe 20 years

Huffingtonpost/Business/Harry Bradford, 4/19/12.
"Dixon, Illinois Comptroller allegedly embezzled $30 million to fund horse breeding business (update)." " Municipal budgets around the country have been squeezed tight in recent years, and a city official in one town allegedly exacerbated those financial woes to fund her horse breeding habit. Rita Crundwell, the comptroller and treasurer of the small Illinois town of Dixon, was arrested Tuesday on charges of embezzling $33.2 million from city coffers, the Chicago Tribune reports. ....If convicted, Crundwell will face 20 years in prison and a $250,000 fine, International Business imes reports.   

UPDATE: Ms. Crundwell has been released from federal custody with asset and travel restrictions, according to the Wall Street Journal. Dixon Mayor James Burke told residents that the city has put Crundwell on unpaid leave and is trying to recoup as much money as possible through asset seizures. Read Article.

Chicago Tribune/Andy Grimm and Melissa Jenco, 4/18/12,  (includes and embedded video,  26 seconds) .... Crundwell's apparent downfall came because she took off four months a year — all but a month unpaid — to operate the horse business and travel to shows. During one of her stints off last October, an employee filling in for Crundwell asked the city's bank for all its statements and discovered a suspicious account that was the source of multiple six-figure transactions, authorities said. Burke, Dixon's mayor since 1999, said he went to the FBI.

According to prosecutors, Crundwell tried to cover her tracks by shifting funds among multiple city bank accounts. From last September to February, she moved nearly $2.8 million in city funds into an account called the Capital Development Fund, authorities said. By March, she had written 19 checks totaling more than $3.5 million from the account, payable to "Treasurer," authorities said, then deposited them into an another account she controlled — the one the mayor said he never knew existed. Read Article.

Submitted by Robert Hutchinson

Posted by Kathy Meeh

25 comments:

Anonymous said...

Why would anyone in Pacifica care about this?

Hutch said...

It shows what trusted government officials can get away with if not watched carefully.

I have heard Pacifica has many accounts that the public is not aware of. I'm not saying there is a problem, but there should be more transparency.

One such account I heard about is funded by taxes in our Comcast bill. There are supposedly millions in that account.

Anonymous said...

wow. government embezzlement is so rampant, more than ever. Thieves. If government is hiding money in accounts we should know about it. God forbid if any of us tried hiding money from the government.

Kathy Meeh said...

Bob, I've added your comment to the article introduction. You mentioned that in your email as well. My bad.

Anonymous said...

Almost all of the public is unaware of the accounts in the budget. That's because only a handful of people take the trouble to look at the budget. But saying that there are accounts that the "public is not aware of" in connection with this article implies that there are secret accounts where funds are hidden away and there is the potential for embezzlement. How about providing some evidence before throwing out implications of shady dealings? "I've heard that ... " is simply irresponsible.

Anonymous said...

"..only a handful of people take the trouble to look at the budget."

Some questions about Frontierland Park money use. City Attorney (C.Quick) Fund money transfers contested by Maureen Lennon (both gone now). Detail use of the WWTP Enterprise Fund. Highway 1 money use. Lots of grey areas in budget use of money. Transparency is good.

Anonymous said...

Totally unsubstantiated rumors that start off with "I have heard..." are worth even less than what we paid for them. When did this site turn into the Tinfoil Hat Society?

Anonymous said...

Notinfoilonyourhead@624, When people with good intentions and lots of righteous enthusiasm don't know what the F they're talking about, but keep on talking.

Anonymous said...

Nothing mentioned here as rumor or "fact" indicates any dishonesty, but it does show a need for the poster/s to self-educate in city accounting/fund accounting. How can you possibly be the watchdog of something you know so little about? Hysterical rumor-mongering is not being a watchdog.

Hutch said...

^ Yes let's not talk about it Anon 624. That's how to keep things ion the up and up.

I never said there was anything improper. Just that there are monies and accounts that the general public can not see by looking at our budget.

Anonymous said...

Transparency has become a real buzz word, but it is not a replacement for citizen involvement. It is simply a word and unless you take the trouble to actually look at the budget and involve yourself in the budget process and, most importantly, educate yourself as to what is involved, transparency is completely wasted on you.
The budget, the budget process are all public. The rest is up to us.

Anonymous said...

oooh a lot of angry people here. Something to hide?

Anonymous said...

Pffft...No need to hide anything when no one is looking or they simply don't understand the information made public right in front of them. Easier to make stuff up than work on finding the truth.

Anonymous said...

Hutch, what hidden accts and monies are you talking about? Accts and monies, specifically.

Anonymous said...

"...they simply don't understand the information made public right in front of them." 734 PM comment.

A little too simplistic and broad brush. The receipts and explanation are not in front of the public. Categories of money received and spent are in the budget. Also, I'm inclined to think a little too much protest. 713 PM has an interesting comment, "oooh a lot of angry people here. Something to hide?"

hutch said...

I know, a lot of anger over a simple article.

I never said anyone is hiding money or there are secret accounts.

Anonymous said...

"I have heard Pacifica has many accounts that the public is not aware of."

Yeah? And 72% of US citizens are unaware of who the Chief Justice is and couldn't name him. It doesn't mean there's a conspiracy to keep the members of the Supreme Court secret, it means that most people are lazy and ignorant about the world around them.

The data is all there if you care to look for it -- the City has an entire page dedicated to a description and accounting of all the funds. Or so I've "heard."

Anonymous said...

748 anon that earlier comment is entirely predictable, not at all interesting. Anon@605 has it right.
Simplistic and broad brushed? I don't know about that. To me, a very broad brush is being used to casually imply Pacifica may have embezzlers in city hall. Serious stuff. Where's the proof? I can already hear the denials that no such implication was meant. Not plausible.
And what are these hidden accounts and monies that are being mentioned as examples of wrong doing? Has the poster seen them? Heard of them from an insider? Does the poster know what he's talking about? Should he be talking to the Grand Jury or the D.A. or are we just painting?

Anonymous said...

I think Hutch is the angry one which is fine but how about some facts to back up the story?

Kathy Meeh said...

"..about some facts to back up the story?"

You're pushing this "story" beyond its re-posting value. No one is suggesting something similar is happening in Pacifica. Bob's comment is that transparency is important.

The facts about this blog article are contained in the newspaper articles. It an interesting human greed story that gets repeated from time to time in different forms. In government, the story is currently as close as the San Mateo County Vector/Mosquito district.

Anonymous said...

And you're overestimating this story's "value" as it relates to Pacifica.

Anonymous said...

uh huh, I just love it when you turn philosophical.

Hutch said...

The nerve to question this cities transparency. I mean look at how crystal clear police outsourcing is.

todd bray said...

Kathy, If you could post a link to a book titled THE WRECKING CREW, which chronicles the Rights tactics regarding governing, department head appointments and intent, it will foster a great discussion here.

Kathy Meeh said...

"...post a link.."

Todd 4/20/12, 7:31 AM, the article is ready with the links you asked for. I'll post it tomorrow or Monday. The book titled THE WRECKING CREW" by Thomas Frank is a good education for those who posted the first two comments on the "Attention All Hippies" Earth Day article. Its a good education for all of us for that matter.