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Dixon gets 40 million settlement in lawsuit

The City of Dixon is in better financial shape today following a settlement in a lawsuit that totals 40 million dollars.

Dixon made national news when the community lost more than 53 million dollars during nearly a 20 year period involving former Comptroller Rita Crundwell. The former city official pled guilty to wire fraud and was sentenced to 19 years, 7 months in federal prison.

Around a half dozen companies and people were named in the lawsuit. The former city auditor, Clifton Larson Allen, will pay more than 36 million dollars for not noticing the money was missing.

Fifth Third Bank will also pay nearly 3 million dollars involving the secret bank account Crundwell had established at the financial institution.

The City of Dixon is expected to receive the money by the end of the year as the council approved the settlement on Wednesday.

Restitution from federal officials involving the sale of Crundwell's property will total around 10 million dollars.

How the money will be spent from the settlement will be talked about during an October meeting with city officials.


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