Lawsuit against auditors and bank will result in big payout to city.
DIXON -- The City of Dixon will get back a big chunk of the money former auditor Rita Crundwell stole from taxpayers. Mayor James Burke announced Wednesday that a $40 million settlement of a lawsuit against Clifton, Larson, Allen; Fifth Third Bank and Sam Card Accounting. The city had filed suit against the three saying they overlooked red flags that would have detected Crundwell's massive embezzlement scheme.
Combined with the sale of Crundwell's assets which were sold at auction by U.S. Marshals, the mayor believes the city will recover a total of $40 million in all after lawyer's fees and other expenses. Crundwell was convicted of stealing $53 million from taxpayers over a period of several years.
Burke says he will hold a special public meeting the week of October 1st to discuss the settlement. The irony of the settlement is that Crundwell's crimes, robbing taxpayers of revenue for decades, will create a one-time windfall for the city now.
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