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Author: billjam Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121219  
Subject: Embezzlement - who's first in line? Date: 5/6/2012 7:40 AM
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In case you missed it, Goggle "Dixon, IL Embezzlement".
City comptroller/treasurer first accused of diverting $30 million in the last 6 years. Not bad for a city with $9 million annual budget. No one noticed an extra $6 million in revenue had gone missing? She only got caught when she took a vacation and the guy covering her job stumbled on a bank account he'd never heard of before. Fortunately instead of asking her for an explanation when she returned he went to the mayor and the mayor immediately contacted the feds.

Feds now say the embezzlement went on over 20 years and the indictment says she got away with $53 million. Feds have seized over 300 of her champion horses already and I'm sure they will take everything she owns eventually. They are saying, according to news stories, the seizures are to protect the assets so the money recovered can be returned to the city.

My question is where is the IRS in all this? I'm sure they are going to go after her for taxes on the $53 million. When that happens where are they in line. Does Dixon get what's left of its money back or does the IRS get it all? There isn't going to be anywhere near a full recovery on this one. The horses and horse farms have good value, the jewelry will likely bring about 1/2 its cost, but the $2 million motor coach and other depreciable assets will bring only a fraction of their cost. And a lot of the money was spent to run the horse farms, on travel, and on other consumption.

I live 25 miles from Dixon. Like to see them get some of this money back. At least they should be able to lower taxes eventually since they won't be diverting millions to this nice lady anymore.

BTW, if she was smart enough to run this deal for 20 years, and she was able to breed 50 world champion quarter horses, I keep wondering why she wasn't able to manage the horse farms profitably.
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