Dixon sues accounting firm over embezzlement

By WEEK Producer

Dixon sues accounting firm over embezzlement

February 4, 2013 Updated Oct 28, 2013 at 2:22 AM CDT

DIXON, Ill. -- The city of Dixon is suing its accounting firm Clifton-Larson-Allen claiming it should have spotted Rita Crundwell's long-term embezzlement.

Crundwell has pleaded guilty to federal wire fraud charges in connection with the theft of almost $54 million from the Dixon city treasury over a 20 year period. The lawsuit seeks compensation for the entire loss.

Crundwell is to be sentenced next week. Her property, including hundreds of quarter-horses, has been auctioned off to reimburse the city of Dixon. However, the amount raised will not come close to the amount of money stolen.

Dixon city officials are suing Clinton Larson Allen for the full amount of the loss. The accounting firm tells Crain's Chicago Business that it was not required to do the testing that might have uncovered the Crundwell fraud.