Traders
TRAINER'S DIRECTORY
Update on AQHA Breeder’s Alleged Embezzlement of $30 Million, Now Raised to $53 Million
Fellow quarter horse breeders and showmen as-
sumed the horse business was making a grand re- covery from the looks of Rita Crundwell’s lavish lifestyle. Crundwell, 58, is the owner of two farms, some 150 horses (at first report), impressive semi trucks and trailers and a high-end motor home. She was able to send her horses to the finest trainers and travel extensively to AQHA shows--winning lots of trophies and top breeder awards. But when the bub- ble burst in mid-April, in truth she was caught al- legedly having her hand in the till for over two decades in her job as comptroller and chief financial officer for the small town of Dixon, Illinois. Crundwell has pled ‘not guilty’ in a Rockford, IL courtroom at her arraignment on May 7, and is cur- rently out on bail. First hired by the city in the early 1980s, she was soon named Comptroller. Crundwell apparently
began diverting monies into various accounts re- quiring her signature in the mid-2000’s… to the tune of $30 million dollars. Records showed she confis- cated more than $3.2 million just since last fall. The scam was uncovered when another employee, fill- ing in for Crundwell while she was on vacation, no- ticed something was amiss… and an investigation turned up the embezzlement. Initial investigation determined Crundwell
owned one horse farm in Illinois and one in Wis- consin, known as Meri-J Farms; 150 registered show and breeding horses, a $2.1 million dollar Lib- erty Coach motor home, a 2009 Kenworth semi tractor and a 2009 Freightliner semi tractor, a $258,000 Featherlite horse trailer, $67,000 Chevy Silverado pickup, fancy cars and over $300,000 in jewelry. Also ‘financed’ were credit card charges, travel costs and entry fees to AQHA shows, and ex- travagant living expenses. But further investigation turned up much higher
numbers: Crundwell allegedly confiscated more than $53 million over the time period, and actually owns 310 quarter horses, not 150. Her personal
websites were shut down after her arrest by the FBI, and the story was all over TV, newspapers and the Internet. In her pre-trial hearing, she paid a highly criticized low bond of $4,500, is free while her wire fraud case proceeds in Federal Court, and had to sur- render her gun license. Barred from selling her horses or any other property, the Feds also on May 1 filed a civil forfeiture to gain control of the horses because they were bought and maintained by fraud- ulently-obtained funds. Late word is that U.S. Mar- shalls have seized control of the horses, and will maintain their level of training to keep up their value for future sale if Crundwell’s guilt is proved. The Meri-J horses include mares now foaling,
and any monies the horses bring at a later sale will be applied to restitution to the city of Dixon. Still un- resolved are refunds for stud fees on mares brought to her stallions but not in foal, the validity of breed- ing certificates, etc. If convicted, wire fraud carries a maximum penalty of 20 years in prison, a $250,000 fine or an alternate fine that totals twice the loss or twice the gain, whichever is greater. w
June 2012 SouthWest Horse Trader 43
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