Dixon officials now say that former Comptroller Rita Crundwell used police and fire department pension funds to pay city bills.
The 59-year old Crundwell has been indicted on the charge of wire fraud. She allegedly misappropritated more than 53 million dollars of city funds over a 2 decade period.
2 interim comptrollers recently hired by the city found the financial problem when contacted by the pension board. Around $100,000 was transferred out of the funds.
The state Department of Insurance is currently auditing the pension fund. The procedure was moved ahead of the original date due to the arrest of Crundwell.
Dixon officials say that the Municipal Retirement Fund has not been affected.
A Federal Judge ruled earlier this week that propertieis owned by Crundwell can be sold in the future. This included homes in Dixon and Florida and a 2 million dollar Mobile Home.
The U.S. Marshall will handle the sale of the property. The money will be placed in a Seized Assets Deposit Fund.
