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She Stole $54 Million From Her Town. Then Something Unexpected Happened.

May 12, 2023 · Admin

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Burke, Dixon’s mayor at the time of Crundwell’s theft, afterwards speculated the comptroller could possibly have intended, at initial, to pay back the city back. But someplace along the way — immediately after the first million? just after the very first $10 million? — that should have appeared impractical. Frank Langholf, a Lutheran pastor who visited her when she was becoming held in the county jail, explained to me their conversations led him to feel she experienced an habit, although he wouldn’t cite particulars for confidentiality causes. Crundwell has never ever advised her own tale publicly, even with quite a few requests: Her brother, Richard Humphrey, at the time asked Pope, the accounting professor and documentarian, to shell out Crundwell’s restitution furthermore further living bills as a situation of an job interview. The restitution was $53.7 million — the total Crundwell stole — and Pope declined. (My personal attempts to get to her through Humphrey, other kinfolk and her attorney were being unsuccessful the law firm stated he’d advise her not to chat to me.)

The explanations why Crundwell escaped detection for so extensive are less complicated to diagnose.

Dixon experienced its personal created-in weak point: a commission variety of authorities, which brings together govt and legislative functions into a town council that both equally passes ordinances and operates municipal departments. Galveston, Texas, initially implemented the product to assist the city rebuild right after a hurricane, in the perception that it could streamline policymaking and implementation, even though also stopping a single mayor from getting too potent by distributing executive authority among the quite a few elected officers. The commission kind flowered in the 20th century in advance of generally fading out as metropolitan areas located extra-economical methods to govern. No huge U.S. city has just one now besides Portland, Oregon, and it is rare even between smaller sized cities.

The composition had two massive down sides related to the Crundwell situation. To start with, it was lacking the normal checks and balances that other towns institutionalize by owning one particular set of individuals to make laws and an additional, individual set to execute them. Secondly, due to the fact commissioners experienced day careers and did city business enterprise only portion time, the system was vulnerable each to clear conflicts of interest and to leadership inexperience. Mayor Burke, for instance, ran a genuine-estate firm, which led to accusations that he produced financial progress decisions to advantage his personal small business. Councilman Considine, acquiring invested a profession in the elegance industry, ran the hearth and general public safety office. A different councilman, Roy Bridgeman, who served as finance commissioner, had taught typing at the Dixon Large — which includes to Rita Crundwell.

The irony is that a system created in aspect to stop elected officials from accumulating too a lot electricity left an opening for an unelected official to seize a excellent offer of her very own. Crundwell’s flip as comptroller started out quickly right after she graduated high school and spanned 20 many years — as a result of five metropolis councils, three mayors and a few finance commissioners. She’d built the town book-preserving technique, which was impenetrable to mainly all city officials but her, and every person seemed great with that. As Bryan Smith specific in a Chicago Journal profile of the scenario, Dixon’s checks, deposits, monetary statements and funding requests were all in the grip of 1 particular person: Crundwell. She was not just exploiting the system. She was the program.

In an accidentally prophetic line that would later on verify irresistible to journalists and a judge, Bridgeman, on stepping down from the metropolis council in 2011, praised Crundwell: “She seems immediately after each individual greenback as if it ended up her possess,” according to a summary of his remarks in the conference minutes.

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