The Clinton Herald, Clinton, Iowa

AP story section

October 16, 2013

Dixon City Council OKs settlement with auditors

DIXON, Ill. — Officials of the northern Illinois community of Dixon approved a $40 million settlement late Tuesday with auditors and a bank in the case of former Comptroller Rita Crundwell’s theft of nearly $54 million in city funds.

Mayor Jim Burke signed several copies of a document finalizing the settlement with city auditors CliftonLarsonAllen and Janis Card and Associates, as well as Fifth Third Bank, according to the (Dixon) Telegraph newspaper.

“This is an iron-clad agreement,” Burke said.

Of the $40 million, $35.15 million will be paid by CliftonLarsonAllen. Fifth Third Bank, which handled the city’s checking accounts, will pay $3.5 million. Janis Card and Associates of Sterling, which took over the city’s audits in 2005 until Crundwell’s arrest, will pay $1 million.

As part of the agreement, the city will file no further lawsuits against the defendants or their representatives.

According to the settlement approved by the Dixon City Council, payments are expected to be made in full to the city by Dec. 1. Dixon will pay $10.35 million in legal fees.

City Council members didn’t talk about how the settlement money will be budgeted. That discussion is expected to take place during the city’s strategic planning sessions, once an administrator is hired.

Crundwell’s thievery ranks as one of the worst abuses of public trust in the state’s corruption-rich history. The money went toward everything from expensive horse trailers, luxury homes and cars to jewelry and birthday bashes in Venice Beach, Fla. She also spent millions on a quarter horse-breeding operation that produced 52 world champions in exhibitions run by the American Quarter Horse Association.

Because Crundwell had sole control of the city’s bookkeeping, the theft went unnoticed for years.

Prosecutors say Crundwell began depositing Dixon’s money in a secret bank account in January 1991 and continued doing so until her arrest in April 2012, months after the FBI began monitoring her transactions.

Her scheme began to unravel when she went on an extended vacation in 2011 and the person filling in for her stumbled upon her secret account, prompting the mayor to call the FBI.

1
Text Only
AP story section
  • Iraq violence threatens OPEC's precarious balance NEW YORK (AP) -- The oil market has balanced out quite nicely for OPEC in recent years. Now, upheaval in Iraq shows that balance may be more precarious than it has seemed. Dramatic changes in oil production around the globe have offset each other ins

    June 13, 2014

  • Board of Trade Grain mixed, livestock mostly higher CHICAGO (AP) -- Grain futures were mixed Thursday in early trading on the Chicago Board of Trade. Wheat for July delivery was 1 cent higher at $5.9025 a bushel; July corn was 1.25 cents lower at $4.4075 a bushel; July oats were unchanged at $3.4625 a

    June 13, 2014

  • Health campaign among nation's costliest CHICAGO -- President Barack Obama's home state agreed to spend $33 million in federal money promoting his health care law, hiring a high-priced public relations firm for work that initially was mocked and spending far more per enrollee on television

    June 13, 2014

  • Some states roll back teacher tenure protections WASHINGTON (AP) -- Even before a judge's scathing ruling against California's teacher tenure policies, the once-sacred protections that make it harder to fire teachers already had been weakened in many states -- and even removed altogether in some pl

    June 13, 2014

  • Tigers' Scherzer outduels Sale CHICAGO -- Max Scherzer already has a Cy Young Award. Now he has a complete game. Scherzer tossed a three-hitter in his 179th career start for his first complete game and Victor Martinez hit his 16th homer to lead the Detroit Tigers to a 4-0 win over

    June 13, 2014

  • $40M casino for rural Iowa approved BURLINGTON (AP) -- The Iowa Racing and Gaming Commission has voted 3-2 to grant a license for a $40 million casino development that would be located in rural central Iowa. Supporters of the Jefferson casino burst into applause during a meeting in Bur

    June 13, 2014

  • Principal case leads to two hearings RED OAK -- Two hearings are planned related to a southwest Iowa school district's plan to fire a high school principal. The Council Bluffs Daily Nonpareil reported the effort to fire Red Oak High School Principal Jedd Sherman will be the subject of a

    June 13, 2014

  • U.S. split outgrows voting booth WASHINGTON (AP) -- Political polarization in America has broken out of the voting booth. A new survey from the Pew Research Center finds Americans are divided by ideology and partisanship not only when they cast ballots, but also in choosing where to

    June 13, 2014

  • Cubs' offense no help for Samardzija PITTSBURGH -- Jeff Samardzija has some advice his pitching brethren when it comes to facing streaking Andrew McCutchen. Don't. The way the Chicago Cubs' ace looks at it, trying to get the Pittsburgh Pirates' star out at the moment only opens yourself

    June 13, 2014

  • State to reopen Juvenile Home DES MOINES -- A district court judge on Wednesday ordered the state to reopen the Iowa Juvenile Home, telling Gov. Terry Branstad he cannot unilaterally change a law approved by the state Legislature. Judge Scott Rosenberg said the home in Toledo was

    February 6, 2014

AP Video
Facebook
National News