Dixon sues accounting firm over town official’s embezzlement charges
By ABDON M. PALLASCH Political Reporter email@example.com June 8, 2012 9:22PM
Updated: June 8, 2012 9:31PM
The small town of Downstate Dixon filed a lawsuit Friday against the accounting firm that looked over the books every year and never noticed $50 million missing.
Rita Crundwell, the town’s treasurer and comptroller, has been charged with embezzling the money to subsidize her horse ranch and a lavish lifestyle.
The city will attempt to recover money from her, but the city is also going after the Certified Public Accountants, the Janis Card Co., which signed off on the town’s books every year.
The firm was paid thousands of dollars to make sure the books were in order, according to the complaint filed Friday in Lee County Circuit Court.
“As a result of these negligent misrepresentations by Samuel S. Card, P.C., the City of Dixon acted in justifiable reliance on these audits and suffered injury and harm due to the embezzlement of funds by Rita Crundwell,” said the lawsuit filed by Devon Bruce of the Chicago law firm of Power Rogers and Smith.
Crundwell has pleaded not guilty to misappropriating $53 million in city funds.