Crundwell is sentenced to 19 years, 7 months

Crundwell’s scheme began in December 1990, when she opened up the Reserve Sewer Capital Development Account in the city’s name ... and hers, at First Bank South, now Fifth Third Bank.

Throughout the years, she transferred millions of dollars from the Capital Development Fund into the RSCDA and used the money to buy expensive homes, luxury vehicles, jewelry and a herd of prize-winning quarter horses that eventually numbered about 400 head.

“While the city was suffering, the defendant was living her dreams,” Assistant U.S. Attorney Joe Pedersen told the judge.

Crundwell’s federal defender, Paul Gaziano, argued for a shorter sentence.

She was “most cooperative” with prosecutors, FBI agents and U.S. Marshals as they investigated the case, and helped them identify and liquidate her assets “with the hope of making amends to the city of Dixon,” Gaziano said.

Pedersen countered that Crundwell already received consideration for her cooperation when prosecutors allowed her to plead guilty to only one count of wire fraud.

Further, Crundwell tried to minimize the extent of her crime at her initial FBI interview. She told two agents she opened up the secret account in 1999 or 2000, and that she believed she only took $10 million. She remembered the date, she told agents, because she needed money to buy the horse, Sheza Telusive Kid, FBI Special Agent Patrick Garry testified.

She bought the horse in April 2001, prosecutors said. Investigators also discovered that Crundwell had taken more than $25,000 from the Dixon Sister Cities account between May 1988 and April 1990.

Pedersen also argued that there was no evidence Crundwell ever intended to stop stealing from the city.

Several city officials testified about how the years of thievery devastated the city and caused the municipality to make serious cuts: Streets could not be fixed; the police radio system could not be upgraded; the cemetery went unmowed; and employee layoffs were imminent.

Mike Stichter, superintendent of streets, testified that he went to Crundwell to request funds to pave city streets and replace an old truck. She told him there was no money to spare.

Crundwell told Stichter, “Mickey, if you know where the money tree is at, I’ll be glad to give you a dump truck,” he testified.