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.
My question is where is the IRS in all this?From strictly a tax law perspective, they're nowhere until they make an assessment and demand payment. At that point they have a lien on all her property, if she has anything left. My guess is that the Feds will wind up with nothing from a tax liability other than another big chuck of bogus change that the IRS can add to its "We need more money, Congress" calculation of the tax gap.I don't know who's going to wind up with the money, the Feds or Dixon. The forfeiture laws are a horribly bad joke if one remembers that there's a Fourth Amendment, which the Supremes have pretty much decided to ignore. I have no idea where the victim stands vs. the Feds.PhilRule Your Retirement Home Fool
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. Profitable and racing horse farms are mutually exclusive. Doesn't matter how smart you are.Race horse farms are something you do with your disposable income for your own enjoyment. Clearly, this gal had plenty of disposable income.--Peter
I know this is a rhetorical question, but didn't it strike anyone as strange that an employee of a small city could afford to breed horses?
I know this is a rhetorical question, but didn't it strike anyone as strange that an employee of a small city could afford to breed horses? Apparently everyone assumed she was making a lot of money in the horse business. She was extremely successful as a breeder, just not as a businesswoman.
Apparently everyone assumed she was making a lot of money in the horse business. She was extremely successful as a breeder, just not as a businesswoman. I had a friend who owned a couple of race horses. They were moderately good, as was his jockey. They won just about enough money to justify keeping them, but were by no means a worthwhile investment.I met another owner of a stable of race horses; I did not know him well. We did not discuss profitability of his business; his main income was from his real-estate business. He said owners never bet on the races because they were allowed to bet only on their own horses. He said the only income was from the prize money and stud fees. And stud fees were low except for very good horses.
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