Marathon Pundit: Illinois corruption: Reagan's hometown hit by $30 million embezzling scandal

Author in January, 2009

Dixon, Illinois, best known as Ronald Reagan's hometown, is reeling after federal officials yesterday accused its longtime treasurer and comptroller, Rita Crundwell, of embezzling $30 million from the town of 15,000 since 2006.

The annual budget of Dixon is in the $8 to $9 million range. Dixon's police chief, who hadn't heard about the scandal until yesterday morning, was asked how such an alleged theft could have taken place, he replied, "That's a good question."

Dixon's mayor, Jim Burke, who has known Crundwell since 1967, needs to furnish answers. Although he told the Chicago Tribune, "I guess people assumed she was making a ton of money in the horse business."

As for Crundwell, she's a legend in the tight-knit world of quarter horse breeding--a cross between Phil Jackson and Jerry Reinsdorf. Horses bred by her have garnered 52 championships.

More from the Trib:

The federal indictment alleged Crundwell raided millions from the town's accounts, including $3.2 million since just last fall. The thefts came to light when she took vacation and an employee filling in for her noticed suspicious transactions in several city accounts.

Bank records obtained by the FBI allegedly show Crundwell illegally withdrew $30,236,503 from Dixon accounts since July 2006, money she used, among other things, to buy a 2009 Liberty Coach Motor home for $2.1 million; a tractor truck for $147,000; a horse trailer for $260,000; and $2.5 million in credit card payments for items that included $340,000 in jewelry.

In front of Reagan's boyhood home

Crundwell owns ranches in Dixon and Wisconsin, the latter is advertising a July auction that almost certainly will be canceled.

The Chicago Tribune zooms in on how she allegedly pulled off her thievery:

Prosecutors said Crundwell handled all of the finances for the city. According to the city's website, she held down positions as both comptroller and treasurer. She even had a relative collect the town's mail from the post office each day, according to the charges.

That web site doesn't list a city manager either, which is a post Dixon clearly needs. Also, why is one person treasurer and comptroller? She worked in both jobs since 1983.

The regal Crundwell can be found at the two-minute mark in the following video. Look for the horse lady at the two-minute mark.