A reliable Illinois treasurer managed to embezzle over $50 million (£39.6m) from her hometown, evading detection for more than two decades.
Rita Crundwell was appointed comptroller of Dixon, Illinois in 1990. After seven years in the position, she secretly established an account.
Named the Reserve Sewer Capital Development Account (RSCDA), Crundwell exploited it to embezzle nearly $2.5 million (around £1.8m) annually from the city, peaking at $5.8 million (£4.3m) in 2008.
Dixon’s annual budget ranged only between $8-9 million.
Over 22 years, she pilfered more than $53 million, funding a lavish lifestyle. With the stolen money, Crundwell founded and operated RC Quarter Horses, a prominent horse breeding enterprise in the US.
Remarkably, her horses earned approximately 52 world championships.
Crundwell also splurged on a 45-foot motorhome and lengthy vacations.
Ironically, her vacations eventually led to her capture, albeit after many years.
Brazenly, Crundwell, now 71, deflected blame for the city’s financial issues onto delayed state tax payments.
This cover-up resulted in severe budget cuts across Dixon: employees missed out on raises for over two years, police radios weren’t upgraded, and street maintenance was significantly reduced.
How did she manage to steal such vast sums of money for so long?
Crundwell was well-respected and trusted within the community.
Residents assumed her successful horse business or a substantial inheritance funded her extravagant lifestyle, never suspecting the actual source.
Crundwell’s scheme unraveled in the autumn of 2011 during one of her extended vacations.
While she was away, acting comptroller Kathe Swanson discovered the RSCDA account and informed the mayor and the FBI.
Upon her return to work on April 17, 2012, Crundwell was arrested. Months later, on November 14, she pleaded guilty to wire fraud and money laundering.
She received a sentence of 19 years and seven months in federal prison and was ordered to forfeit nearly all her assets, including approximately 400 horses.
In 2021, after eight years in prison, Crundwell was granted home confinement, moving to her brother’s 80-acre farm in Dixon.
Her early release was influenced by the Covid pandemic, health issues like high cholesterol and high blood pressure, and reportedly good behavior.
Her sentence is set to conclude on October 20, 2028.