Town Sues Auditor in Embezzlement Case

Dixon says auditor should have caught theft of money allegedly taken by former treasurer

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    A city that had its former treasurer accused of swindling its coffers out of $53 million is now accusing an auditor for not catching her sooner.

    Dixon, Ill. fired Rita Crundwell in April amid a federal indictment that alleges she transferred the town's money, starting in 1990, to a secret account to create a horse-breeding company and support a lavish lifestyle.

    The city has now filed a lawsuit against Janis Card Associates and its owner, Samuel Card, for failing to notice the thefts, the Chicago Tribune reports.

    An employee filling in for Crundwell, who was taking an extended vacation, requested all of the city's bank statements and brought the records from one account to the attention of Mayor James Burke.

    The suit, filed Friday, states the auditors "failed to report and identify irregularities in the financial statements," and the auditors "knew or should have known" of the money leaving the city's hands, according to the Tribune.