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U.S. attorney's office still working on payback

Amounts, terms of loans to administrators still a mystery

Published: Friday, May 3, 2013 1:15 a.m. CDT

DIXON – Efforts are ongoing to collect Rita Crundwell's assets, including two personal loans she made to Fire Chief Tim Shipman and former City Engineer Shawn Ortgiesen, the U.S. Attorney's office said Thursday.

When the former comptroller was sentenced in February for wire fraud, a court order said of the loans only that Crundwell is to "assign two notes payable in her favor from two Dixon administrators who borrowed money from her."

Randall Samborn, public information officer for the Northern District of Illinois, said he could not release the amounts or terms of the loans.

Samborn said he is limited to release what is made public through court records, and none have been filed to address those loans.

Documents seized from City Hall after Crundwell's arrest included personal loan agreements that Crundwell had with Shipman and his wife, Diane, and Ortgiesen and his wife, Angela. The amounts and terms were not disclosed.

Shipman has said he is working with federal authorities on terms and conditions for repayment, but would give no further details, because, he said, he wants to cooperate fully with authorities.

Ortgiesen was not available for comment.

Shipman has said his loan from Crundwell was “fairly short term” at a 1 percent rate, and Ortgiesen has said his loan was a 10-year note at 4 percent.

Also, among the seized documents was a $2,000 loan agreement between Crundwell and Donald Wolber, who is not employed by the city.

"I'm not ruling out the possibility that at some time additional public records could make further information available," Samborn said. "That's not the state of affairs at this time."

Sentencing appeal brief due in June

DIXON – Rita Crundwell's attorney will receive more time to file an appeal of her federal sentence.

U.S. District Court Judge Philip Reinhard said that a legal brief and a short appendix from Crundwell's attorney are due June 10. That had been due May 8.

In turn, the brief on the appeal is now due July 10.

Reinhard sentenced the ousted Dixon comptroller in February to 19 years, 7 months in federal prison for wire fraud.

The appeal will be handled by the U.S. Court of Appeals for the Seventh Circuit, based in Chicago.

The defense appealed the judge's orders, which included the length of her sentence, the restitution she must pay, and the process to pay it.

Defense attorney Paul Gaziano declined to say exactly what the appeal covers.

Crundwell still awaits word from the Federal Bureau of Prisons on where she will serve her sentence. For the time being, she is in the Boone County Jail. She will remain in custody during the appeal.

 

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