The city of Dixon, Illinois, once known as the hometown of former President Ronald Reagan, became notorious in 2012 when a staggering $53.7 million embezzlement scheme spanning 22 years came to light.
The perpetrator, Rita Crundwell, used her position as Dixon’s comptroller and treasurer to divert city funds, financing her luxurious lifestyle and Quarter Horse breeding business.
The scandal, now the subject of Scam Goddess, a new documentary series premiering today, 15 January on Freeform and streaming on Hulu the next day, delves into Crundwell’s elaborate scheme and the fallout that ensued.
Crundwell, who began working for the city as a teenager, gradually gained control over Dixon’s finances. According to former Mayor Jim Dixon, “She had total control then over all the finances,” after assuming dual roles as comptroller and treasurer. Crundwell’s public image, bolstered by her success in the equestrian world, masked her clandestine activities.
Her fraudulent scheme, enabled by a secret bank account opened in 1990, involved creating fake invoices for road projects and transferring city funds into the account.
Over two decades, Crundwell executed 169 transactions, averaging $2.5 million annually. The thefts constituted 28% of Dixon’s budget during the scheme’s final six years, leaving public services severely underfunded.
The embezzlement unravelled in 2012 when Crundwell’s deputy, Kathe Swanson, discovered the secret account while Crundwell was away. Swanson alerted then-Mayor Jim Burke, who involved the FBI.
Crundwell was arrested following a six-month investigation and later pleaded guilty to wire fraud. Sentenced to nearly 20 years in federal prison, she served eight years before being transferred to home confinement during the COVID-19 pandemic. President Joe Biden commuted her sentence in December.
Dixon managed to recover much of the stolen funds through asset auctions and legal settlements, enabling the town to rebuild its infrastructure and embark on new development projects. City Manager Danny Langloss reflected on the town’s resilience, stating, “You can’t look in the rearview mirror. We got to keep our eyes on the future.”
Scam Goddess sheds light on the story of a trusted city employee who manipulated her way to wealth at the expense of her community.
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