President Biden commuted the sentence of Rita Crundwell, the woman who embezzled over $53 million from a small Illinois town and spent it on luxury goods, real estate, and a horse breeding business
President Biden on Thursday commuted the sentence of Rita Crundwell, the former comptroller of Dixon, Illinois, who was convicted of embezzling over $53 million from the city over a 22-year period starting in 1990. Crundwell’s case remains one of the most notorious municipal frauds in U.S. history.
The president also commuted the sentences of 1,499 individuals on home confinement due to the pandemic, marking the largest single-day act of clemency in modern history. Additionally, he issued 39 pardons.
In a statement, Biden said, “These commutation recipients, who were placed on home confinement during the COVID pandemic, have successfully reintegrated into their families and communities and have shown that they deserve a second chance.”
Crundwell’s Conviction and Sentence
Crundwell, now 71, was sentenced in February 2013 to nearly 20 years in federal prison after pleading guilty to embezzling city funds. Initially set for release in October 2029, she was freed early on August 4, 2021, due to pandemic-related policies, and has since been on home confinement.
As part of her plea deal, Crundwell admitted to opening a secret bank account in Dixon’s name in 1990, which only she controlled. Over the next two decades, she transferred city funds into the account to fund personal expenses, including a horse breeding business, luxury real estate, and lavish personal purchases. She also falsified invoices to mislead auditors, claiming budget shortfalls were due to delayed state tax revenue.
Her scheme was uncovered in 2011 when a city employee, filling in for Crundwell during her vacation, discovered the fraudulent account. Then-Mayor Jim Burke reported the findings to federal authorities.
Reaction to the Clemency Decision
The decision to commute Crundwell’s sentence has sparked outrage and disappointment among former officials and residents of Dixon. Many believe the clemency undermines accountability for public corruption.
“This sends the wrong message. It’s as if crime pays,” said former Dixon Mayor Li Arellano. He noted that Crundwell’s actions diverted funds from essential infrastructure projects, which have since become significantly more costly. “It will take decades for Dixon to fully recover from her crimes,” he added.
Former U.S. Marshal Jason Wojdylo, who tracked down Crundwell’s stolen assets, expressed frustration, calling the decision a betrayal of the justice system. “She conned the President of the United States. This official act undid decades of work,” he said.
Watchdogs also criticized the clemency. David Greising, president of the Better Government Association, called Crundwell’s fraud emblematic of Illinois’ history of corruption. “Commuting her sentence reduces the risk for others who might consider similar crimes,” he said.
Lack of Remorse
Those familiar with the case say Crundwell has shown little remorse. “She is not remorseful. Her only regret is that she was caught,” Wojdylo said. He and others believe the clemency decision diminishes accountability for one of the most egregious cases of public fraud in the country’s history.