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Wed September 25, 2013
City Of Dixon To Recover Some Losses
The city of Dixon will recoup about $40 million of the $53 million in public money stolen by former comptroller Rita Crundwell.
Dixon Mayor Jim Burke said Wednesday that the city has settled a lawsuit with auditors and a bank in connection with Crundwell's thefts. Crundwell is serving nearly 20 years in federal prison. Authorities say she stole the money over more than 20 years, spending it on a lavish lifestyle and horse-breeding operation.
Burke says the settlement is for $40 million. Federal officials have raised about $10 million so far selling Crundwell's belongings. That means $50 million for the city, minus $10 million in expenses, or about $40 million in restitution.
The city's attorneys say both sides have agreed to the settlement, which is pending approval by a judge.