The Clinton Herald, Clinton, Iowa

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November 7, 2013

Dixon using settlement for a bond repayment

DIXON, Ill. — A small northern Illinois community will use a portion of a $40 million legal settlement to repay bonds years ahead of schedule.

The (Dixon) Telegraph reports the city plans to pay off three bonds valued at a combined $12.3 million. The early payoff agreement means the community will save about $4 million in interest.

Dixon is receiving the cash in connection with former comptroller Rita Crundwell’s theft of millions of dollars in public money. The deal is part of a settlement with a bank and auditor the city contended failed to do enough to expose Crundwell’s scheme.

Crundwell was sentenced to 20 years in federal prison after pleading guilty to stealing more than $53 million over two decades.

Dixon expects to receive the balance of the money by Thanksgiving.

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