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Kerry Lutz's--Financial Survival Network

May 2, 2012 presents:

Only in Illinois, Ronald Reagan's birth place, would the comptroller of a small city steal funds for 23 years, undetected. Rita Crundwell, 59, took more than $53 million over the past two decades from the city of Dixon, Ill.; among her ill begotten acquisitions were:

  • $2,500,000 in personal American Express charges, including over $339,000 in charges for jewelry.
  • $2,108,000 for a 2009 Liberty Coach Motor Home.
  • $450,000 horse farming operations expenses.
  • $258,698 for a 2009 Featherlite Horse Trailer
  • $146,787 for a 2009 Kenworth T800 Tractor Truck.
  • $140,000 for a 2009 Freightliner Truck.
  • $56,646 for a 2009 Chevrolet Silverado pickup truck.

The amazing thing is the city only has a budget of $8-9 million or perhaps $20 million. This means somewhere around 10 to 20 percent of the budget was stolen each year, and no one noticed! The City never saw fit to post their financial documents on their website, which virtually every other municipal government in the nation does. In my small town in Westchester County, NY, there would be an immediate rebellion over such an omission. This is shocking in-and-of itself and should have sent off alarm bells long ago. 

The New York Times is very alarmed over Apple's strategy in avoiding the taxman by a variety of creative strategies. That this type of behavior would be found objectionable by the Gray Lady is not surprising, because it's been years since they experienced anything resembling a profit. Then there's the former Fed Official Warsh, who's alarmed about the too big to fail banks but believes the solution is better disclosure. In this case, better disclosure would no doubt result in bank runs and lynchings. 

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