Crundwell pleads not guilty to wire fraud

ROCKFORD – Former Dixon Comptroller Rita A. Crundwell pleaded not guilty to federal wire fraud Monday morning.

The charge stems from what prosecutors say was a misappropriation of $53 million in city funds over more than two decades. Crundwell is accused of using the money to fund her horse ranch and “lavish lifestyle.”

She faces up to 20 years in prison and a fine of up to $250,000 plus restitution if convicted.

The federal government also has filed a civil suit to take possession of Crundwell’s more than 300 horses. Prosecutors say they plan to sell them to recoup some of Dixon’s lost funds.

A status hearing on both cases will be held in 6 weeks, on June 15.

Crundwell’s federal public defender, Paul Gaziano, will need the time to review the more than 11,000 pages of discovery and photos from the searches carried out by the FBI, Magistrate Judge P. Michael Mahoney said.

Crundwell has not turned in her financial affidavit, which details her assets and is used to determine whether she gets to keep her court-appointed public attorney.

Gaziano is preparing the document, he said, and asked that it be kept under seal. The judge said he would do so, at least until he has had a chance to review it.

Mahoney said he granted Crundwell a public defender ahead of the affidavit being filed because most, if not all, of her assets were seized as a part of the case.

Crundwell, 59, is prevented from selling any of her horses or other property as a condition of her release on a $4,500 recognizance bond. She also can’t touch two bank accounts.