80 of Rita Crundwell Horses sell online for 1.64 Million


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Some of the 271 horses on Rita Crundwell’s RC Ranch near Dixon, photographed Friday, Aug. 3, 2012. The U.S. Marshals Service is selling the first 93 of the former comptroller’s herd of quarter horses via an online auction. Crundwell amassed more than 400 horses, which will be sold to recover money she is accused of embezzling from the city of Dixon.

 

http://www.rrstar.com/news/x887146051/Rita-Crundwells-horses-sell-for-1-64M-in-online-auction

Texas boarder, vet to get share of sale proceeds


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ROCKFORD – As ousted Dixon comptroller Rita Crundwell’s criminal case inches forward, some headway was made Wednesday regarding her large herd of quarter horses.

Federal prosecutors and an attorney for one of two interveners in the civil suit seeking to sell Crundwell’s horses say they’ve reached an agreement regarding liens on 54 horses.

Brock and Kristin Allen of Allen Equine Services, and veterinarians A. Barry Wood and Hartman Equine Reproduction Center, all of Texas, say they have liens in excess of $150,000 for boarding and caring for Crundwell’s horses there.

The agreement essentially recognizes the liens and says they will receive a portion of the proceeds from selling the horses once the case is resolved. How much was not specified.

Some details of the agreement still are being worked out; it might be filed today or Friday, Assistant U.S. Attorney Scott Paccagnini said.

Joel Hutori, attorney for the Texas interveners, declined to comment Wednesday.

A status hearing will be held Oct. 10.

Crundwell, 59, is charged with federal wire fraud as part of what prosecutors say was a scheme in which she misappropriated more than $53 million of Dixon’s money since 1990.

They say she used the money to fund her horse operations and her “lavish lifestyle.”

On May 1, the same day she was indicted, prosecutors filed a lawsuit seeking to sell Crundwell’s 401 horses and other items that they say were bought with illegal funds.

The following month, Magistrate Judge P. Michael Mahoney gave the U.S. Marshals Service the OK to sell the horses, 21 embryos, 13 saddles, and frozen semen from eight horses.

The bulk of the herd will be sold Sept. 23 and 24 during at an auction at her ranch at 1556 Red Brick Road south of Dixon.

The out-of-state horses will be sold online Sept. 11 and 12. The proceeds from the sale, minus the costs incurred by the marshals and liens, will be given to the city once the case is resolved.

The Meri-J Ranch in Beloit, Wis., which has boarded horses for Crundwell since the 1990s, also has been allowed to intervene in the case.

It, too, claims liens in excess of $150,000 from caring for 60 horses.

Its attorney, Rodney Kimes of Rockford, said Wednesday that he has spoken with prosecutors and anticipates a similar resolution.

Under the civil forfeiture statute, “innocent owner’s” interest in seized property will not be forfeited. An “innocent owner” is one who did not know of the illegal activity that led to the forfeiture.

The interveners in the case say they had no knowledge of Crundwell’s activities, according to court documents.

Crundwell, dressed in a white button-down shirt and black pants, showed little emotion at the short hearing, while attorneys discussed the sale of her horses.

Her public defender, Paul Gaziano, told Mahoney that he recently received another disk of evidence in the case and that he still is reviewing the more than 17,000 pages of discovery.

Mahoney gave Gaziano until the Oct. 10 status hearing to file pretrial motions.

 

http://www.saukvalley.com/2012/08/29/texas-boarder-vet-to-get-share-of-sale-proceeds/a2heb16/

Rita Crundwell back in court for status hearing


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Dixon’s former comptroller, accused of stealing over $53 million from the city, was back in court Wednesday for a status hearing.

Rita Crundwell got an update on both her criminal case, in which she faces one count of wire fraud, and her civil case, regarding the sale of assets authorities say she purchased with stolen money.

Crundwell’s criminal case is not yet ready to be transferred to another judge. She will appear in court again on October 10 and her attorney has until then to file a pretrial motion.

Her horses will be auctioned off next month. Once her horses are sold, her property and assets on those properties will also be sold. Crundwell will appear in court regarding these matters on October 10 as well.

http://www.wrex.com/story/19409327/rita-crundwell-back-in-court-for-status-hearing

Feds open up ex-Dixon official’s horse trophy room


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DIXON, Ill. (AP) — A trophy room crammed floor to ceiling with prizes from championship horse shows offered the most jaw-dropping glimpse into the life of a former city official in northern Illinois charged with stealing millions in public funds.
U.S. Marshals took journalists on a tour Friday of Rita Crundwell’s immaculate ranch in Dixon, including the dazzling log cabin trophy room that’s part of the horse barn.
“This room speaks to the serious value of the herd,” said U.S. Marshal Darryl McPherson, referring to the 400 prized horses authorities seized and will soon try to sell. “These horses represent some of the best raised and bred in the quarter horse industry.”
Crundwell was arrested in April and is accused of stealing more than $53 million from the city since 1990 while working as its comptroller. She has pleaded not guilty to a charge of wire fraud. Prosecutors say Crundwell siphoned the money into a secret bank account and used it to sustain a luxurious lifestyle as well as her nationally renowned horse-breeding operations.
The trophy room is brimming with horse statuettes, ribbons, belt buckles and other prizes displayed on the floor, shelves, tables, a fireplace mantle and even the ceiling beams. The haul of winnings sits among antiques, saddles and Western-style leather furniture.
One wall of the room is decorated with large prints of Crundwell at championship events with her horses, as well as oil paintings of horses.
There’s a flat-screen TV and a well-stocked bar. The room also has a dining area and a full bathroom.
Elsewhere in the barn is a horse shower that resembles a car-wash bay and an old-fashioned popcorn maker.
Mike Jennings, of the Virginia-based company that will take charge of the horse auction in September, said interested buyers from around the world have already contacted him.
He expects the horses will sell for anywhere from $200 to $200,000 each.
If Crundwell is found guilty, the proceeds will go toward restitution for the city of Dixon.

Rita crundwell RV did not sell.


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DIXON, Ill. (AP) – The U.S. Marshals Service has rejected the only bid for a luxury motor home seized from a former city official in northern Illinois because it was below the minimum $1 million requirement.

The 2009 Elegant Lady series Liberty Coach motor home once belonged to former Dixon Comptroller Rita Crundwell and had a list price of $2.1 million. But it couldn’t muster half that in bidding that ended Wednesday.

Crundwell is accused of stealing more than $53 million in public funds since 1990 and using the cash to fuel an extravagant lifestyle and a nationally renowned horse-breeding operation. She’s pleaded not guilty.

The Marshals Service will try to find another way to sell off the RV.

They’re also planning to sell 400 of Crundwell’s horses

Horses owned by Dixon’s former comptroller will go up for sale


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WREX.com – Rockford’s News Leader

The 400 horses that belong to former Dixon comptroller Rita Crundwell will be put up for sale. During a civil hearing Monday the judge set the sale of the animals to happen between August 1st and Sept. 30. The U.S. Marshall Services will decide the exact date.

The Marshalls are already selling Crudwell’s luxury motor home. It is for sale via sealed bids. The 2009 Liberty Coach Motor Home has a minimum bid of $1 million. Bids will be accepted until 2 p.m. on August 1.

Crundwell, 59, has been indicted for allegedly stealing more than $53 million from the City of Dixon since 1990 and using the proceeds to finance her horse breeding business and lavish lifestyle.

Six Crundwell horses dead


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Some of the more than 400 horses that were seized from former Dixon comptroller Rita Crundwell,have died.

Since the U.S. Marshals Service started caring for the horses on May first,sixof them have died. Several at the Dixon ranch,one in Wisconsin and one in Texas.

Most of them were under veterinary care before they died. The first passed away on May 3rd from bacteria in the blood. The second died on June 4th from pneumonia,a third died on June 20th. The foal was found in a field at the Dixon ranch. Authorities say it also had a heart murmur. On June 21st a horse in Texas died from colic. On July 5th an older horse died from kidney failure. And on July 11th another horse died from kidney failure.

The U.S. Marshals Service says they could award a horse auction contract next week. The contractor then has 45 days to put on the auction. It will take place at the Dixon ranch, likely in late August or early September. People will also be able to bid online.

U.S. Marshals To Sell First of Rita Crundwell Assets


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U.S. Marshals To Sell First of Rita Crundwell Assets:
Luxury Motor Home
Washington – The U.S. Marshals Service is selling the first of Rita Crundwell’s assets, a luxury motor home, via a sealed bid sale. Crundwell, 59, has been federally charged with wire fraud in U.S. District Court in Northern Illinois.

The 2009 Liberty Coach Motor Home has a minimum bid of $1 million. Bids will be accepted until 2 p.m. CDT August 1. Public viewings will be available by appointment only on July 23 and July 27 from 1 to 2:30 p.m. CDT.

Crundwell, the former comptroller of Dixon, Ill., has been indicted for allegedly fraudulently obtaining more than $53 million from the city since 1990 and using the proceeds to finance her horse breeding business and lavish lifestyle.

Should the government prevail in its civil and criminal actions against Crundwell, net proceeds from the sale of the defendant’s forfeited assets will be applied toward restitution to the city of Dixon.

Note to media: Media access will be granted by appointment only during the public viewing dates and times: July 23 and July 27 from 1 to 2:30 p.m. CDT. Call (414) 297-1144/4486 to schedule an appointment.

For more information, terms and conditions on the motor home sale, go to www.usmarshals.gov/assets/2012/motorhome.html

For more information on the federal case, go to:
http://www.justice.gov/usao/iln/pr/rockford/2012/pr0501_01.pdf
http://www.usmarshals.gov/assets/2012/protective_order.pdf

The U.S. Marshals Service is responsible for managing and selling seized and forfeited properties acquired by federal criminals through illegal activities. Proceeds generated from asset sales are used to compensate victims, supplement funding for law enforcement initiatives and support community programs. As part of the Department of Justice’s Asset Forfeiture Program, the Marshals currently manage more than 19,000 assets with a value of $4.4 billion.

Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov.

Dixon residents largely unaware of Crundwell’s lifestyle


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DIXON, Ill. — If Rita Crundwell stole $53 million from taxpayers here, as federal authorities claim, the former comptroller’s discreet spending and success as a horse breeder helped dampen local suspicions.

Many people in Dixon, from the mayor to a bartender at one of Crundwell’s hangouts, thought the 59-year-old’s accumulation of horses and property in the town of 15,733 people was the result of her breeding-business savvy.

But federal investigations into her assets revealed hundreds of horses in 14 states, luxury homes and cars, jewelry and other high-dollar purchases.

“I didn’t know anything about the $2 million RV,” Dixon Mayor Jim Burke said of another of Crundwell’s assets. “I’ve since learned about some pretty lavish parties she had at horse shows in Florida with that big motor home and her expensive horse trailers.”

The U.S. Marshals Service is moving to return Crundwell’s massive inventory of horses, their offspring — even embryos and semen — back into cash for the city of Dixon.

Strict rules will govern the upcoming public auction of her assets, and Burke hopes the return on taxpayers’ unapproved investments will start to pay off before the first mare is sold.

“It is my understanding it’ll be one of the largest horse sales in the history of the country,” he said. “People will come from all over and stay for days. It’s economic development at its worst.”

Discreet spending

Burke said he thinks Crundwell maintained a “ruse” to help hide her decades of stealing, which federal prosecutors say she managed by moving city money into private accounts.

“For example, the Budweiser Clydesdales were in town, and I was asked about a place to keep them overnight,” he said. “I asked Rita about keeping them out at the ranch on Red Brick (Road).

“She said, ‘Let me think about that.’ Then, the next day, she said, ‘I got overruled on that.’”

The mayor said he thinks the reply was intended to give him the impression Crundwell was not in charge of the ranch, which requires a security code for access through gates that are personalized with her initials.

He since has learned she was keeping nearly 300 horses there, and every one of the animals is on the Marshals Service’s list of assets in forfeiture.

Elaine Bruns, a bartender at Shamrock Pub, about a half-mile from one of Crundwell’s homes, said she frequented the small bar, which has low-slung ceilings, 10 barstools and a regular lunch crowd.

“She was always very nice,” she said of Crundwell. “Her tipping was OK. It depended on the day. I thought she got her money from the horses. I truly believe some of her family didn’t know what was going on.”

Crundwell’s list of assets includes hundreds of thousands of dollars worth of jewelry, but one of the owners of a Dixon jewelry store said she never shopped there.

Mike Venier, of Venier’s Jewelry, speculated a policy at his family-owned business may have turned Crundwell away: “We don’t take American Express.”

She is alleged to have charged more than $2 million on her personal American Express card, including more than $300,000 in jewelry.

Venier, whose jewelry store is just one block from City Hall, also speculated on how Crundwell may have gotten away with the crimes for which she is accused.

“I think we trusted to a fault,” he said. “I think that’s the bottom line: good, old-fashioned, small-town trust.

“At least the leak has stopped. That’s a positive for us.”

The mayor said trust wasn’t the only factor at play.

“She never wore that jewelry around City Hall,” he said. “Never.”

If she had, it likely would have stood out.

Crundwell’s office was just down the hall from Burke’s second-floor office, where bulges in the carpet give away large spots where adhesive has dried. Furniture is dated, and ceiling tiles and wallpaper are stained from water leaks.

The assets

Two of Crundwell’s Dixon properties are just down the road from one another.

Her longtime home on Route 52 East has the same punch-code security system as the entrances to the ranch on Red Brick Road.

Both properties are surrounded by fences, and the house is situated in such a way that it is protected from views from the street. At the ranch, about a dozen miniature stables dot the manicured grounds. Even the crop of corn across the gravel road appears to be doing well, its stalks shoulder height.

Some of the horses’ names: Have Faith in Money, Packin’ Jewels, RC Tilted Palace and Money Is Hot.

“Somebody’s going to pay a lot of money for some of those horses,” predicted Marcia Freeman, a Sycamore, Ill., horse-farm owner, who said she has been doing business with Crundwell for 12 years. “A couple of her studs, like Good I Will Be, will go for $250,000 to $500,000.”

There also is considerable value in the horse saddles that are expected to go up for auction this summer.

The Marshals Service has listed 10 “Phil Harris saddles” in its auction inventory.

Mabelene Harris, of North Carolina-based Harris Leather & Silverworks, estimated Crundwell paid $18,000 for some of them, adding that she knows of at least 13 saddles her company made for Crundwell.

“Some of them are very expensive,” she said of the custom-made riding gear. “Our saddles have an excellent resale value.

“We’re going to miss all that money she spent with us. I sure feel sorry for the folks in that town.”

Mayor Burke said he is hoping those high resale values — on hundreds of horses, dozens of saddles, homes, cars, trucks, trailers and land — will help Dixon begin to dig out.

Asked what his response would be if Crundwell’s investments actually paid off big for Dixon, Burke said, “That would be wonderful! Maybe we could go up and testify on her behalf.

“I keep thinking: She had to have known this would all come crashing down.”

Ex-Dixon comptroller’s 400 horses to be sold


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ROCKFORD — A federal magistrate judge approved the sale Friday of more than 400 horses once owned by Rita Crundwell as part of the government’s wire fraud case against the former Dixon comptroller.

Thirteen saddles, 21 horse embryos and frozen stallion semen were among the other items to be sold under Magistrate Judge P. Michael Mahoney’s ruling. The proceeds of the sale will be used to pay for the horses’ upkeep since Crundwell’s April 17 arrest. Other parties, including those with liens on the horses, are filing claims with the court to recover their funds as well.

Crundwell is accused of stealing more than $53 million in public money during a 20-year tenure as Dixon’s comptroller.

The U.S. attorney’s office alleges she used the money to fund a lavish lifestyle that included a horse farm in Lee County.
Crundwell, who was in court Friday, is charged with a single count of wire fraud and could face 20 years in prison if convicted.

Also Friday, Crundwell’s public defender, Paul Gaziano, asked for more time to review the 17,000 pages of evidence in the case before proceeding. Mahoney agreed and set the next status hearing for July 23 to discuss Gaziano’s progress.