Fair
72°FFairFull Forecast

City had fidelity bond on Crundwell

Published: Thursday, April 26, 2012 1:15 a.m. CDT • Updated: Tuesday, May 1, 2012 4:54 p.m. CDT

DIXON – It may be a tiny drop in a very big bucket, but the city may collect $150,000 through a fidelity bond and other insurance it had on its comptroller.

The fidelity bond was for $50,000, and the city may get $100,000 more through the Illinois Municipal League Risk Management Association, a nonprofit insurance carrier, Mayor Jim Burke said Wednesday.

A fidelity bond is insurance an employer buys to protect itself against losses such as embezzlement or employee theft that are not generally covered under normal theft or burglary policies.

Claim forms are being prepared by city attorneys, Burke said.

The sum is tiny in comparison to the millions federal prosecutors say 59-year-old Rita A. Crundwell misappropriated over the years.

The city also hopes to recoup any losses through the sale of seized property, but that is not an option unless and until there is a conviction, Assistant U.S. Attorney Joe Pedersen said, adding that an appeal could delay the process.

Related:

‘This is almost surreal’

More online:

Follow the Crundwell story by visiting this page. We have compiled a list of stories, documents and multimedia resources.

 

National video

Reader Poll

Lee County has a new United Way executive director. Do you donate to your local United Way?
Yes
No