$53 Million Scam: Former Comptroller Rita Crundwell Pleading Guilty

Ex-comptroller Rita Crundwell accused of a $53 million scam will be pleading guilty on Wednesday, federal prosecutors said.

Rita Crundwell (Photo: Youtube)

Crundwell is expected to plead guilty of a federal charge that accuses her of stealing the public money while overseeing the public finances of her small Illinois city.

She is suspected of stealing more than $53 million over two decades and using the money to sustain a lavish lifestyle and a nationally renowned horse-breeding operation.

Crundwell, 58, served as the Municipal Comptroller and Treasurer of Dixon, Illinois, with a population of about 16,000 people, from 1983 to April 2012. She was arrested April 17, 2012 and was indicted by a federal grand jury for embezzling $30 million from the city over a period of six years. On May 2, 2012, a federal grand jury indictment expanded on the earlier charges and charged her with embezzling $53 million over the last 22 years.

The former comptroller reportedly told FBI agents that some of the money was spent on her horses and their upkeep. Prosecutors sought the forfeit of her horse farm and 300 horses, in addition to her three homes and a luxury motor vehicle. She was in charge of all the city's finances. Prosecutors said she transferred money into a personal bank account, and that the alleged diversion of money for personal use was not detected until she took an extended vacation and a co-worker looked at the bank accounts. She has been charged with one count of wire fraud. She was released on a $4,500 recognizance bond on April 18, 2012.

Crundwell pleaded not guilty to the wire fraud count, which carried a maximum sentence of up to 20 years in prison.