Draining Dixon by Chicago Tribune Staff

Author:Chicago Tribune Staff
Language: eng
Format: epub
Publisher: Agate Publishing
Published: 2013-06-05T16:00:00+00:00

Online auction corrals $1.6M

Feds to sell more of ex-Dixon treasurer’s prized horses in wake of alleged scheme

Friday, Sept. 14, 2012

About 80 horses once owned by indicted former Dixon Treasurer Rita Crundwell brought in $1.64 million this week at an online auction, money that ultimately could go to the northwestern Illinois city’s coffers to offset the huge losses from her alleged fraud scheme.

The horses sold for a wide range — from a low of $1,050 to a high of $226,000, which set a record for the Virginia business that conducted the auction.

Crundwell had developed a championship quarter horse breeding operation on her sprawling Dixon ranch that federal authorities allege was financed by decades-long thefts totaling $53 million, a stunning loss for a small town best known as the boyhood home of President Ronald Reagan.

“It’s a once-in-a-lifetime opportunity to be able to get a horse out of that operation,” said Mike Jennings, co-owner of Professional Auction Services Inc., which conducted the sale.

Another 300 of Crundwell’s quarter horses will be auctioned off at her Dixon ranch later this month.

Federal marshals also are trying to sell her luxury motor home, but bids at this point are far below government estimates of the vehicle’s worth.

Experts have said that poor or nonexistent financial controls allowed Crundwell to steal so much from Dixon since 1990. She became the comptroller and treasurer in 1983.

Though Crundwell has pleaded not guilty to a wire fraud charge, a judge in Rockford has authorized federal authorities to sell off some of her assets, including her ranch and other property in addition to the horses.

If she is convicted, the proceeds would go to Dixon — but only after the government recovers its costs. The U.S. Marshals Service, which has been overseeing the care of the horses since Crundwell’s arrest in April, has said the upkeep of the animals is costing about $200,000 a month.

The horses auctioned online this week were at ranches around the country. Bidders were able to view photos and biographies on each horse before posting bids.

Sales came in just above Jennings’ goal of $1.5 million. He attributed the enthusiasm to Crundwell’s reputation as a leading breeder as well as her penchant for turning down offers for some of her best horses in the past.

Five-time world champion I Execute Class brought in the $226,000 bid and became Professional Auction Services’ highest-selling mare and halter horse even with the company’s longtime history of managing the American Quarter Horse Association’s World Championship Show Sale.

Also setting a record was IE Copy, another world championship winner that became the company’s highest-selling gelding at $101,000.

Crundwell’s remaining horses will be auctioned off Sept. 23-24 at the Dixon ranch. Jennings said he hopes those sales bring in an additional $3 million to $4 million.

Crundwell’s luxury motor home also is being sold through an online auction after marshals were unsuccessful in drawing a bid of at least $1 million through a sealed-bid process. Crundwell bought the motor home for $1.575 million in 2008. Online bids have reached $200,010.

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