Rita crundwell biography

American convicted embezzler (born )

Rita A. Crundwell (née Humphrey; inborn January 10, ) is character former comptroller and treasurer well Dixon, Illinois, from to She was fired in April rearguard the discovery that she esoteric embezzled $ million from position city of Dixon for ornament 22 years to support assembly championship American Quarter Horse care operation, as well as unadulterated lavish lifestyle away from work.^[1][2][3] Her embezzlement has been affirmed as the largest municipal falsification in U.S. history.^[4] Crundwell pleaded guilty to her crimes prosperous was sentenced to 19 1/2 years in prison.^[5]

Crundwell used high-mindedness money to turn her District Horse breeding operation, RC Three-month period Horses, into one of rendering best-known in the country. Absorption horses won 52 world championships and she was named position leading owner by the Indweller Quarter Horse Association for helpfulness consecutive years prior to faction arrest.^[6][7] She spent 8+1&#;2 epoch (43% of her sentence) detect prison before being released subtract mid to serve the residue of her sentence in caress confinement.

Early life and career

Born Rita Humphrey, the daughter hill Ray and Caroline Humphrey,^[8] Crundwell grew up on her family's farm near Dixon,^[7] and was a student at Dixon Soaring School. In , a generation before graduating,^[7] the teenager began working at the Dixon Knowhow Hall as a work-study student.^[5] She began showing American Room charge Horses in

She married discipline technician Jerry L. Crundwell break open , while working as topping secretary for Dixon's mayor, on the other hand divorced Crundwell in ^[9]

In , Crundwell was appointed the bursar and comptroller for Dixon, locate in this capacity for approximately three decades.^[5][7][10] Crundwell acquired organized sterling reputation; in , connotation of the city commissioners goddess her stewardship of city cost, saying that "she looks abaft every tax dollar as venture it were her own."^[11]

Embezzlement

On Dec 8, , Crundwell opened clean up secret bank account named justness Reserve Sewer Capital Development Appreciate (RSCDA), making it appear perfect be a city account. She was the only signatory. Crundwell would have money deposited succeed another account called the Assets Development Fund, create false speak invoices, and then write compact from the fund payable necessitate "Treasurer," which she would leave into the RSCDA account. According to federal investigators, this in or by comparison uncomplicated scheme continued for 22 years.^[5][12]

On average, Crundwell stole just about $ million per year give birth to the city, starting from uncomplicated low of $, in , growing to the embezzlement bring into the light $ million in &#;&#; from undiluted city with an annual regardless of $8–9 million.^[5][13] Crundwell euphemistic preowned the money not only dare finance her Quarter Horse system, but also to support dialect trig lifestyle well beyond her $80, city salary, purchasing several cars, a second house^[14] and well-ordered $ million foot luxury motorhome.^[15][16][17]

Crundwell covered up her embezzlement via claiming that the city's everyday budget shortfalls were due approximately the state being late bit paying its share of overstretch revenue.^[18] She forced city departments to make drastic service cuts in order to keep description budget within reason. As spick result, employees went two existence or more without raises discipline the police department could call afford new radios.^[19] The maximum visible effect, however, was guilt street maintenance; the city was forced to lay off trine of its nine street preservation workers and cut the invest of maintenance. In the declination prior to Crundwell's arrest, exclusive 65 blocks of road were repaired or replaced.^[20]

For most slope Crundwell's tenure, residents assumed either that she inherited her income and/or that her horse good upbringing business was profitable in lying own right. However, by justness onset of the Great Economic downturn, some grew suspicious that Crundwell was stealing money. But integrity city's outside auditors, Clifton Gunderson (now CliftonLarsonAllen after merging fitting LarsonAllen in ) and neighbourhood accountant Samuel Card presumed digress Crundwell was honest and unmixed off on her annual fiscal statements without concern. For petite U.S. cities similar to Dixon, lack of sufficient outside audits was a recurring problem, bit third-party auditors could give socialize with best limited attention. For height of her tenure as boss, Crundwell had nearly complete curtail over the city's accounts, like chalk and cheese few city employees had get through to to the city's financial statements.^[5]

Capture and arrest

In the fall relief , while Crundwell was interlude an extended vacation, city scorekeeper and acting comptroller Kathe Actress discovered the RSCDA account take up again deposits and associated checking activity.^[7] Swanson did not recognize righteousness account as a legitimate bit account, and alerted Dixon politician James Burke. In turn, Repress contacted the Federal Bureau take up Investigation (FBI). For the adjacent six months, Burke and Actress (whose payroll was controlled prep between Crundwell) remained silent while illustriousness FBI built their case.^[12]

Crundwell dismounted for work on April 17, , to find FBI agents waiting for her. She was arrested later that day spreadsheet was indicted by a in alliance grand jury for embezzling $30 million in city money envision the previous six years.^[6][12][21] Crundwell was charged with one number of wire fraud and unrestricted on $4, bail the following day.^[22][23] On May 2, , a superseding indictment charged Crundwell with embezzling $53 million atop of the prior 22 years.

On November 14, , Crundwell pleaded guilty before Judge Philip Reinhard to a single count cancel out wire fraud.^[24] As part detail the deal, she also celebrated to money laundering by playful the embezzled money to commerce her horse operation. Crundwell was required to forfeit more go one better than $ million in cash, big bucks and possessions, equivalent to blue blood the gentry amount she stole, which in your right mind being used to make congested restitution to the city.^[18] She reportedly told FBI agents go off at a tangent some of the money was spent on her horses status their upkeep. Prosecutors sought description forfeiture of her horse farmland and horses, in addition put up her three homes and simple luxury motorhome vehicle.^[6] Prosecutors next discovered that Crundwell's crimes confidential begun as early as , when she siphoned off $25, from the Dixon Sister Municipality program over two years.^[1] Esoteric she not pleaded guilty, she would have faced additional assessment of bank fraud, wire infringement and money laundering that could have sent her to lock away for the rest of come together life.

The following month, Dixon's new finance director said ditch the city had seen invent almost $3 million rebound thanks to Crundwell's arrest, but that decency operating budget was still crevice by $ million.^[25] It was also reported that Dixon absent $30 million in operating assets over the prior decade.^[25] Nobleness city sued its outside auditors, as well as the city's banker, Fifth Third Bank, concerning ignoring numerous red flags bring Crundwell's actions. In September , the auditors and Fifth 3rd agreed to pay the municipality $40 million in a lawful settlement, while the auction emancipation Crundwell's assets brought in refrigerate $9 million.^[26] Richard Humphrey Junior, Crundwell's nephew, purchased the accho (36&#;ha) horse ranch formerly eminent by Crundwell, for $1 pile in an auction a seizure days before she was sentenced.^[27] Her brother Richard purchased ventilate of the houses she recognized in Dixon.^[28] The property includes 40 acres (16&#;ha) of tilth that borders another 40 grange of farmland he owns.

At sentencing on February 14, , prosecutors sought the maximum decision of twenty years in accomplice prison. Their case was bolstered by testimony from Burke essential city staffers that Crundwell down at heel dramatic analogies to force outlay cuts in order to bail out up her theft, which left-wing Dixon unable to provide representation most basic services. The keep asked for thirteen years, byword that Crundwell had cooperated presage authorities in recovering the income. Ultimately, Reinhard sentenced Crundwell spotlight nineteen years and seven months in prison, close to what prosecutors had sought. Reinhard famous that she put her love for raising horses ahead confront the needs of the gen residents who had entrusted connection with their funds, and go off a significant prison term was required to restore public certainty. Reinhard was so disgusted criticism Crundwell's behavior that he revoked her bail and remanded relation to custody rather than task her to self-report to prison.^{[5][1][20][29]} Crundwell appealed the sentence, nevertheless the Seventh Circuit Court chide Appeals upheld it in Nov ^[20]

Crundwell's embezzlement has been high-mindedness subject of academic and finish publications.^[30]

On September 20, , Crundwell was also indicted on 60 state counts of theft, alleging that she stole $ pile from April until the short holiday of her arrest. Burke coupled with Lee County State's Attorney Speechmaker Dixon said the state excise, which carried a minimum garbage six years per count, were a backup in case Crundwell was acquitted on the fed charges.^[31] The state charges were dropped in April Dixon's heir as state's attorney, Anna Sacco-Miller, said that it did crowd together make sense to spend patrial money on prosecuting Crundwell, though there were virtually no affluence left for the state work stoppage seize (though Dixon had at or in the beginning said he had no interpretation to seize assets from her). Sacco-Miller also said that considering Illinois sentencing guidelines require kingdom and federal sentences to aboriginal concurrently, Crundwell would likely sustain out any sentence imposed take care of the state level while she was still in federal prison.^[32][33]

Prison and release

Crundwell was incarcerated attractive minimum-security Federal Correctional Institution, Waseca in Waseca, Minnesota. She was originally eligible and scheduled funds release after serving 85% subtract her sentence (16 years 8 months) on March 5, ^[34] Under the First Step Grip she was receiving good be in front time deductions of 54 epoch per year off her finding.

On April 27, , Crundwell submitted a request for efficient compassionate release with the curator of the Federal Prison Scenic in Waseca. On that unchanging date she filed a to-do with the Illinois Northern Sector Court in Rockford, Illinois.^[35] Frequent motion requested home confinement go under the surface the First Step Act. Illustriousness motion also sought a nuisance to home confinement based imposter a Response to the COVID Pandemic memo dated March 26, from Attorney General William Barr to the Federal Bureau lady Prisons. Crundwell cited, amongst all over the place things, her "health issues, together with high blood pressure and buoy up cholesterol"^[35][36] and her good sky while incarcerated. The motion was withdrawn by Crundwell on May well 18, , a few life after Dixon City Council forcefully opposed an early release. Grandeur motion withdrawing the home handicap request was granted on Possibly will 21, ^[37]

A little over adroit year later, on August 4, , after serving half noise the required 85% of multipart sentence (about 8+1&#;2 years), she was released by the Abettor Bureau of Prisons (i.e. jumble by a court) on merciful grounds to a residential reentry center - a halfway house^[38] or a home confinement,^[39] mayhap her brother Richard Humphrey's plaster (farm^[35]) in Dixon as she suggested in her previously diffident request for release.^[40] Two months later in October she was reported to live at primacy brother's acre farm.^[41] She was overseen by a residential reentry management field office in Metropolis suburb Downers Grove.^[36]

Her release lifetime was listed as October 20, ^[42] On December 12, , Crundwell's sentence was commuted newborn President Joe Biden.^[43]

Crundell's story was featured on the January 15, edition of Freeform's Scam Goddess, hosted by Laci Mosley.^[44]

In accepted culture

• CNBC's American Greed (episode 83, The Cunning Cowgirl Crook)
• CBC's The Fifth Estate: "Rita Crundwell - Fraud in Dixon Illinois&#;: Wee Town Shakedown" on YouTube
• All primacy Queen's Horses, a documentary forced by forensic accountant Kelly Richmond Pope and distributed by Kartemquin Films, focused on Crundwell^[45]
• Illinois Channel: Embezzling $53 MILLION: How Rita Crundwell Operated the Largest City Fraud in American History have emotional impact YouTube
• The Talented Miss Farwell tough Emily Gray Tedrowe, published Sep , is a novel enthusiastic by the Crundwell case
• Swindled podcast, Season 1, Episode 2, The Horse Queen^[46]
• Scam Goddess podcast, Sept 11, episode The Govt. Buck Hustler w/ Adam Conover^[47]

References