Dixon Files Suit Against Auditors Over Embezzlement


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The City of Dixon has filed a civil complaint against some of its auditors for not catching any of the alleged $53 million dollar embezzlement by the city’s former comptroller, Rita Crundwell.

Prosecutors say over a 20 year period, Crundwell diverted the money to an account she set up for personal use, spending it on luxury homes, jewelry, vehicles and a horse-breeding operation. She has pleaded not guilty to a federal charge of wire fraud and is awaiting trial.

Now, the city claims two Sterling accounting firms it hired to audit the books over the past five years, failed to catch the embezzlement. In the complaint, the city says Samuel S. Card, CPA, P.C. and Janis Card Company, LLC were negligent and wants to recoup the city’s losses.

In addition to the accounting firms, the city also named two banks–Fifth Third Bank and US Bank–as respondents in discovery. That means the city wants access to documents and other information to determine if anyone else should be named in the suit.