Feds lift horse owner’s alleged fraud to $US53m
The fraud committed past times an Illinois city’s fiscal controller to fund her horse-breeding trouble concern as well as lavish lifestyle involved $US53 million, federal authorities allege.
Rita Crundwell, 58, of Dixon, a metropolis of close 16,000 people inward Lee County, was originally defendant terminal calendar month of misappropriating to a greater extent than than $US30 ane 1000 1000 inward metropolis funds.
Patrick Fitzgerald, U.S.A. attorney for the northern district of Illinois, as well as Robert Grant, particular agent-in-charge of the Chicago Office of the FBI, at in ane lawsuit allege the total involved was $US53 ane 1000 1000 as well as spanned ii decades.
Crundwell, comptroller of Dixon, was indicted on Tuesday, alleging she fraudulently obtaining to a greater extent than than $53 ane 1000 1000 from the town since 1990. A federal grand jury returned a single-count indictment charging Crundwell amongst ane count of wire fraud.
Federal authorities are also seeking civil forfeiture of 311 quarter horses belonging to Crundwell.
Since Crundwell was arrested on Apr 17 as well as defendant of misappropriating to a greater extent than than $US30 ane 1000 1000 since 2006, farther investigation resulted inward the indictment’s expanded allegation that the fraud involved a further $US23 million.
Crundwell, 59, of Dixon, who served every bit comptroller since 1983 as well as handled all of the city’s finances, was released on her ain recognizance on Apr 18.
She volition endure arraigned at 10.30am on Mon earlier U.S.A. Magistrate Judge Michael Mahoney inward U.S.A. District Court inward Rockford.
The indictment seeks criminal forfeiture of $US53 million, every bit good every bit numerous assets that were seized from Crundwell when she was arrested.
On a parallel track, authorities filed a civil lawsuit alleging that 311 quarter horses owned past times Crundwell are dependent champaign to civil forfeiture because she purchased and/or maintained them amongst criminal fraud proceeds.
The authorities volition seek eventually to sell the horses as well as apply the proceeds toward restitution to Dixon.
“The authorities is pursuing both criminal as well as civil forfeiture proceedings to ensure that every available tool is beingness used to recover proceeds of the alleged fraud inward gild to recoup every bit much coin every bit possible for the City of Dixon, its residents as well as taxpayers,” Fitzgerald said.
The investigation is continuing, he added.
Dixon, amongst a population of close 15,733, is close 100 miles southwest of Chicago.
Crundwell owns RC Quarter Horses, LLC, as well as keeps her horses at her ranch on Red Brick Road inward Dixon as well as at the Meri-J Ranch inward Beloit, Wisconsin, every bit good every bit amongst diverse trainers across the country.
In add-on to 311 registered quarter horses, dozens of foals are expected to endure born this spring. As role of the civil lawsuit, the authorities requested a pretrial restraining gild that volition secure the government’s involvement inward the horses as well as allow officials to accept necessary steps to ensure the animals’ wellness as well as well-being, including veterinarian as well as dietary care, which has been ongoing.
The U.S.A. Marshals Service is expected to hire a contractor to larn by the horses.
The indictment seeks criminal forfeiture of ii residences as well as the Equus caballus farm inward Dixon, a home inward Englewood, Florida, a $US2.1 ane 1000 1000 luxury motor home, to a greater extent than than a dozen trucks, trailers as well as other motorized farm vehicles, a 2005 Ford Thunderbird convertible, a 1967 Chevrolet Corvette roadster, a pontoon boat, close $US224,898 inward cash from ii banking concern accounts, as well as other assets allegedly purchased amongst fraud proceeds.
Many of these assets were seized when Crundwell was arrested, as well as the authorities this calendar week requested a restraining gild on the existent estate that is allegedly dependent champaign to criminal forfeiture.
According to the indictment, on Dec 18, 1990, Crundwell opened a banking concern trouble concern human relationship inward the cite of the City of Dixon as well as RSCDA, known every bit the RSCDA account. Between Dec 1990 as well as Apr 2012, Crundwell used her seat every bit comptroller to transfer funds from the Dixon’s Money Market trouble concern human relationship to its Capital Development Fund account, every bit good every bit to diverse other metropolis banking concern accounts.
Crundwell allegedly repeatedly transferred metropolis funds into the RSCDA trouble concern human relationship as well as used the coin to pay for her ain personal as well as individual trouble concern expenses, including Equus caballus farming operations, personal credit carte payments, existent estate as well as vehicles.
As role of the fraud scheme, Crundwell allegedly created fictitious invoices purported to endure from the State of Illinois to demo the city’s auditors that the funds she was fraudulently depositing into the RSCDA trouble concern human relationship were beingness used for a legitimate purpose.
To conceal the scheme, Crundwell told the mayor as well as City Council members that the province was slowly inward its payments to the
city, when, inward fact, she knew that she had fraudulently transferred the funds for her ain use, the indictment alleges.
Wire fraud carries a maximum punishment of twenty years inward prison, as well as a $US250,000 fine, or an alternate fine totaling twice the loss or twice the gain, whichever is greater.
Earlier story: Finance boss used city’s cash to fund Equus caballus farm – feds
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