Essay On Rita Crundwell

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Rita Crundwell: Mastermind Behind Largest Municipal Fraud in U.S. History Rita Crundwell was the trusted comptroller and treasurer of Dixon, Illinois with a passion for horses. She took advantage of her trust and responsibility to commit the largest known municipal fraud in the history of the United States. This fraudster has surprised and astounded people around the world by the amount of the fraud and for how long it went. Rita served the small town of Dixon from 1983 to 2012 until sentenced to nearly twenty years in federal prison for embezzling an astonishing $53.7 million. The story of this Dixon Commissioner shocked her small town and is studied by auditors all over. When someone thinks of a typical fraudster, it is not likely he or she would describe a person like Rita Crundwell. She was born on January 10, 1953; she grew up on her family’s farm near Dixon. Her family had a good reputation in the community, and she got an internship with the City of Dixon in high school. After her high school …show more content…

Streets were going unpaved, ambulances and police radios needed to be replaced, Dixon city employees had gone years without a raise, and the infrastructure was in a state of total disorder. The cash flow issues caused by Rita's fraud seemed to be caused by the financial crisis and economic recession of the late 2000's. In an October 2011 City Council meeting, officials were worried about a "fiscal crisis" that kept them from hiring part-time employees (Pearce, 2015). Paula Meyer, Dixon's current finance director, said that from the time Rita started to steal, "the city had about $10 million in a fund balance", but "by the time she was arrested, we were $22 million in debt" (Pearce, 2015). Liandro Arellano, member of the all-new City Council for Dixon, said "the city had been borrowing $5 million a year at the end of it because she was stealing so much" (Pearce,

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