They trusted her and believed her explanations. She knew more about city financial matters than any of the council members. Through the years, her knowledge of accounting and the maintenance of city accounts increased. City officials believed her after each annual financial audit. In the next few years, the city endured several financial shortfalls, but Crundwell would always say they were caused because the state often owed the city funds. Crundwell now managed the finance and accounting departments and supervised two clerks. She had told Lohse that she thought she'd be a good candidate because of her years of city hall experience.ĭixon, a city of 15,000, 100 miles southwest of Chicago, had an annual budget of less than $9 million a year in 1983. Walter Lohse, the city's finance commissioner and council member, recommended Rita for the position. In 1983, Rita Crundwell became Dixon's comptroller when the previous comptroller retired. A judge granted the divorce two months later. The marriage lasted nearly 12 years, but she filed for divorce in April of 1986, citing mental abuse and alleging that the couple engaged in frequent arguments. Her family once showed and bred horses, and she wanted to revive the family's name. In 1971, she won second place in a halter horse category at the county fair and her passion for equines grew. After graduating, she had planned to attend a community college, but she stayed at city hall and became a clerk. She was an honor roll student, a homecoming attendant and had participated in 4-H activities. Rita Humphrey was 17 when she began working for the Dixon, Ill., city hall in 1970 as part of a work program for high school students. She has pleaded not guilty to misappropriating more than $53 million in city funds. Six months later, agents arrested Crundwell. After a city clerk found a problem in the city's accounts, the mayor contacted the FBI. Her salary was $80,000 per year, but she enjoyed a lavish lifestyle and was a nationally known horse breeder. As the comptroller for the small town of Dixon, Ill., since 1983, Rita Crundwell managed all financial aspects of the city funds, including transferring money between accounts, writing checks and authorizing payments.
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