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Local

Government moves to seize Crundwell's trophies

About 700 trophies among the next round of assets to be seized

DIXON – The U.S. government located about 700 trophies former Comptroller Rita Crundwell won during horse competitions, and filed a motion in federal court last week to seize them.

The motion, filed Friday afternoon, also includes Crundwell's show clothing collection and miscellaneous household items such as artwork, hats, bar stools and framed photographs of her.

Click here to view the motion

If the motion is granted, the U.S. Marshals service will collect and liquidate the items, and the proceeds will be sent to the city as part of her money judgment.

Also filed Friday was the government's response regarding reimbursements in two of Crundwell's retirement funds, and turnover orders representing $38,434.13.

Click here to view the response

Ruth Robinson, Crundwell's attorney, had filed a response to the government's motion seeking the retirement fund reimbursements. In it, she contested the funds inclusion, saying the city already has been made whole and that the funds weren't included in the assets identified to be seized before Crundwell entered her plea.

In his response, Joe Stewart, of the Financial Litigation Unit of the U.S. Attorney's office, said the assets don't have to be previously identified to be seized, and even if the money the city received for restitution and its settlement were to be combined, it wouldn't equal the amount Crundwell stole from the city.

Crundwell was arrested in 2012 and later convicted of wire fraud in the theft of nearly $54 million over 2 decades. A federal judge not only issued a restitution order, but also a money judgment, which means the government can seize about $106 million in money or assets.

The city has received about $9.3 million, so far, from the sale of her assets and property. Separately, the city settled a lawsuit with its former bank and auditors in 2013 for $40 million, a quarter of which went to legal fees.

A final order of forfeiture was filed in May 2013, listing items the government was going to seize. It was amended in June 2013.

But, according to the motion filed Friday, "based on further investigation by the United States Marshals Service following sentencing" the trophies and other items were discovered.

The government continues its search for assets that can be seized.

Included in the items to be seized are:

• About 20 pieces of artwork

• Three Yamaha Zuma scooters and a Honda all-terrain vehicle

• A Dynex flat screen TV

• An iMac desktop computer

• Two bicycles

• Patio furniture

• A leather tissue box with her initials

• A decorative mirror

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