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Rita Crundwell case: Protective Order Requesting Assets Sale

Rita Crundwell case: Protective Order Requesting Assets Sale

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Published by saukvalleynews
Federal prosecutors want permission to sell certain properties of former Dixon Comptroller Rita A. Crundwell, including five land parcels and a luxury motor home, before she is convicted. According to a motion filed, prosecutors want to sell the items because "financial responsibilities relating to the subject properties are burdensome and the defendant does not have the means to meet the obligations."
Federal prosecutors want permission to sell certain properties of former Dixon Comptroller Rita A. Crundwell, including five land parcels and a luxury motor home, before she is convicted. According to a motion filed, prosecutors want to sell the items because "financial responsibilities relating to the subject properties are burdensome and the defendant does not have the means to meet the obligations."

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Published by: saukvalleynews on May 29, 2012
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CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222222      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      111      ooofff

     666      PPPaaagggeeeIIIDDD      ###:::555888

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS WESTERN DIVISION UNITED STATES OF AMERICA v. RITA A. CRUNDWELL ) ) ) ) ) Case No. 12 CR 50027 Judge Phillip G. Reinhard

AGREED MOTION FOR A PROTECTIVE ORDER DIRECTING THE INTERLOCUTORY SALE OF CERTAIN PROPERTY The United States of America, through PATRICK J. FITZGERALD, United States Attorney for the Northern District of Illinois, moves for entry of a protective order directing the interlocutory sale of certain property pursuant to the provisions of Title 21, United States Code, Section 853(e)(1)(A), as incorporated by Title 28, United States Code, Section 2461(c), and in support thereof submits the following: 1. On May 1, 2012, a federal grand jury returned an indictment charging

defendant RITA A. CRUNDWELL with wire fraud, in violation of Title 18, United States Code, Section 1343. 2. The indictment seeks forfeiture to the United States, pursuant to 18

U.S.C. § 981(a)(1)(C) and 28 U.S.C. § 2461(c), of any and all right, title, and interest the defendant may have in any property constituting and derived from the proceeds traceable to the wire fraud violation, including but not limited to: a. b. c. the single family residence located at 1679 U.S. Route 52, Dixon, Illinois (““Route 52 property””); the horse farm property located at 1556 Red Brick Road, Dixon, Illinois (““Red Brick Road horse farm””); a single family residence located at 1403 Dutch Road, Dixon, Illinois (““Dutch Road property””);

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222222      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      222      ooofff      666      PPPaaagggeeeIIIDDD      ###:::555999

d.

approximately 80 acres of vacant land located in Lee County, Illinois with Lee County property identification number 14-09-07100-014 (““80 acres vacant land””); and a single family residence located at 821 East Fifth Street, Englewood, Florida (““Florida property””);

e. 3.

Defendant RITA A. CRUNDWELL is the record owner of the foregoing

real properties. 4. To preserve its interest in the real properties, the United States recorded

lis pendens notices with the Lee County, Illinois Recorder’’s Office or Charlotte County, Florida, Recorder’’s Office against each of the real properties. 5. There are two outstanding mortgages secured by the Dutch Road

property, the first recorded December 6, 2007 with the Lee County Clerk and assigned document number 2007008620 and the second recorded March 26, 2010 with the Lee County Clerk and assigned document number 2010001402. The mortgages and notes are held by the First National Bank of Amboy. The sole borrower identified in the mortgages and notes is defendant RITA A. CRUNDWELL. 6. The United States requests action by this Court because financial

responsibilities relating to the subject properties are burdensome and the defendant does not have the means to meet the obligations. The financial responsibilities include but are not limited to the mortgages secured by the Dutch Road property; regular care and maintenance of all the subject real properties, including buildings and grounds; and payment of the utility bills at each of the subject real properties. Additionally, there are crops located at the Dutch Road property and 80 acres of vacant land that 2

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222222      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      333      ooofff      666      PPPaaagggeeeIIIDDD      ###:::666000

require care and maintenance. Moreover, permitting the sale of the properties now would increase the amount, after satisfaction of obligations, that will be available for forfeiture to the United States upon conviction. 7. Pursuant to 21 U.S.C. § 853, this Court has jurisdiction to enter orders

or to take other action to preserve and to protect property to insure that property or its equity will be available for forfeiture in the event of conviction. 8. Title 21, United States Code, Section 853(e)(1) provides in pertinent part: Upon application of the United States, the Court may enter a restraining order or injunction, require the execution of a satisfactory performance bond, or take any other action to preserve the availability of property described in subsection (a) of this section for forfeiture under this section (A) upon the filing of an indictment or information charging a violation of this subchapter or subchapter II of this chapter for which criminal forfeiture may be ordered under this section and alleging that the property with respect to which the order is sought would, in the event of conviction, be subject to forfeiture under this section. 9. Accordingly, in order to preserve the availability of the equity in the real

properties subject to forfeiture, the United States, along with defendant RITA A. CRUNDWELL, agree to the interlocutory sale of the property by the United States Marshals Service, and agree that the proceeds from the sales, after payment of certain verifiable costs, be retained in an escrow account maintained by the United States Marshals Service, pending further order of this Court. Although the defendant, through her attorneys, does not object to the issuance of the entry of a protective order

3

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directing the interlocutory sale of the property as described above, in doing so, defendant is not admitting to the allegations contained in the indictment. 10. The United States requests that, pending sale of the foregoing real

properties, the United States Marshals Service be permitted access to the real properties for the limited purpose of securing the premises and taking whatever steps are necessary to prepare the properties for sale and preserve the value of the properties for forfeiture. The government requests that this Court enter an order that allows the United States Marshals Service to secure the subject properties as necessary, with the assistance of defendant RITA A. CRUNDWELL, including but not limited to the making of arrangements to continue the utility services at the foregoing real properties, caring for the crops and farm land at the Dutch Road property and the 80 acres of vacant land, changing the locks, and entering the properties, to secure the properties and prepare them for sale. If any of the subject properties are occupied by tenants, with the agreement of the United States Marshal Service, the tenants may remain in the property upon execution of an occupancy agreement. 11. The United States further requests that to the extent the United States

Marshals Service incurs certain costs, the United States Marshals Service be permitted to deduct from the proceeds of the sale of the properties, any reasonable and necessary costs incurred to effectuate the sale of the properties and costs incurred to maintain the properties, if any, pending sale. 12. Failure to take the proposed action relating to the foregoing properties,

will in all probability, result in economic damage to the value of the subject properties 4

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222222      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      555      ooofff      666      PPPaaagggeeeIIIDDD      ###:::666222

and jeopardize the availability of any equity in the properties, thus making the properties or proceeds from the sale unavailable for forfeiture. 13. Because this is an agreed motion, notice of presentment is not required.

Local General Rule 5.3(a). WHEREFORE, the United States respectfully requests that this Court grant this motion and issue a protective order directing the interlocutory sale of the foregoing properties. A draft order is submitted herewith. Respectfully submitted, PATRICK J. FITZGERALD United States Attorney By: /s/ Joseph C. Pedersen JOSEPH C. PEDERSEN Assistant United States Attorney 327 South Church Street Suite 3300 Rockford, IL 61101 (815)987-4444

5

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222222      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      666      ooofff      666      PPPaaagggeeeIIIDDD      ###:::666333

CERTIFICATE OF FILING AND SERVICE I, JOSEPH C. PEDERSEN, certify that on May 25, 2012, in accordance with FED. R. CRIM. P. 49, FED. R. CIV. P. 5, LR5.5, and the General Order on Electronic Case Filing (ECF), the following document: AGREED MOTION FOR A PROTECTIVE ORDER DIRECTING THE INTERLOCUTORY SALE OF CERTAIN PROPERTY was served pursuant to the district court’’s ECF system as to ECF filers. /s Joseph C. Pedersen Assistant United States Attorney 327 South Church Street, Suite 3300 Rockford, Illinois 61101 815-987-4444

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222333      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      111      ooofff      555      PPPaaagggeeeIIIDDD      ###:::666444

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS WESTERN DIVISION UNITED STATES OF AMERICA v. RITA A. CRUNDWELL ) ) ) ) ) No. 12 CR 50027 Judge Philip G. Reinhard Magistrate P. Michael Mahoney

AGREED MOTION FOR A PROTECTIVE ORDER DIRECTING THE INTERLOCUTORY SALE OF CERTAIN PROPERTY The United States of America, through PATRICK J. FITZGERALD, United States Attorney for the Northern District of Illinois, moves for entry of a protective order directing the interlocutory sale of certain property pursuant to the provisions of Title 21, United States Code, Section 853(e)(1)(A), as incorporated by Title 28, United States Code, Section 2461(c), and in support thereof submits the following: 1. On April 16, 2012, during the course of an investigation conducted by the

Federal Bureau of Investigation, a seizure warrant was issued in the United States District Court for the Northern District of Illinois for a 2009 Liberty Coach Motor Home, Model H-345, D/S, VIN: 2PCV334988C711148. The warrant was executed on April 17, 2012 in Beloit, Wisconsin, and the subject vehicle has since remained in government custody. 2. On May 1, 2012, an indictment was returned charging RITA A.

CRUNDWELL with wire fraud in violation of Title 18, United States Code, Section 1343. The indictment sought forfeiture to the United States of certain property as property which constitutes or is derived from proceeds traceable to the charged wire fraud offense, including but not limited to the subject vehicle, pursuant to the

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222333      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      222      ooofff      555      PPPaaagggeeeIIIDDD      ###:::666555

provisions of 18 U.S.C. § 981(a)(1)(C). 3. RITA A. CRUNDWELL is the record owner of the subject vehicle and

Bank of America is the lien holder. As of April 24, 2012, the ending principal balance owed on the subject vehicle is $434,619.68. 4. In order to preserve the availability of the equity in the foregoing vehicle

subject to forfeiture, the United States, along with defendant RITA A. CRUNDWELL, agree to the interlocutory sale of the vehicle by the United States Marshals Service, and agree that the proceeds from the sales, after payment of certain verifiable costs, be retained in an escrow account maintained by the United States Marshals Service, pending further order of this Court. Although the defendant, through her attorneys, does not object to the issuance of the entry of a protective order directing the interlocutory sale of the property as described above, in doing so, defendant is not admitting to the allegations contained in the indictment. 5. Pursuant to 21 U.S.C. § 853, as incorporated by 28 U.S.C. § 2461(c), this

Court has jurisdiction to enter orders or to take other action to preserve and to protect property to insure that the property or its equity will be available for forfeiture in the event of conviction. 6. Title 21, United States Code, Section 853(e)(1) provides in pertinent part: Upon application of the United States, the Court may enter a restraining order or injunction, require the execution of a satisfactory performance bond, or take any other action to preserve the availability of property described in subsection (a) of this section for forfeiture under this section (A) upon the filing of an indictment or information 2

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222333      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      333      ooofff      555      PPPaaagggeeeIIIDDD      ###:::666666

charging a violation of this subchapter or subchapter II of this chapter for which criminal forfeiture may be ordered under this section and alleging that the property with respect to which the order is sought would, in the event of conviction, be subject to forfeiture under this section. 7. Failure to take the proposed action relating to the subject vehicle, in all

probability, will result in economic damage to the value of the vehicle and jeopardize the availability of equity in the subject vehicle, thus making the property or proceeds from the sale unavailable for forfeiture. Specifically, the monthly payment owed to Bank of America for the lien on the subject vehicle is $3,866.82. Because the defendant does not have the means to meet the financial responsibilities relating to the subject vehicle, the principal, interest, and penalty fees will accumulate and will diminish the equity available in the subject vehicle. Additionally, the value of the vehicle has been depreciating since seizure and the storage and maintenance costs will continue to accrue, further diminishing the potential equity available in the vehicle. 8. The United States also requests that the United States Marshals Service,

which may incur certain costs, be permitted to deduct from the proceeds of the sale of the subject property any reasonable and necessary costs incurred to effectuate the sale of the subject property and incurred to maintain the subject vehicle, if any, pending sale. 9. Because this is an agreed motion, notice of presentment is not required.

Local General Rule 5.3(a). WHEREFORE, the United States respectfully requests that this Court grant 3

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222333      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      444      ooofff      555      PPPaaagggeeeIIIDDD      ###:::666777

this motion and issue a protective order directing the interlocutory sale of a 2009 Liberty Coach Motor Home, Model H-345, D/S, VIN: 2PCV334988C711148, as permitted by 21 U.S.C. § 853, as incorporated by 28 U.S.C. § 2461(c), or any appropriate relief to preserve the availability of the property or the proceeds from the sales for forfeiture.

Respectfully submitted, PATRICK J. FITZGERALD United States Attorney By: /s/ Joseph C. Pedersen JOSEPH C. PEDERSEN Assistant United States Attorney 327 South Church Street Suite 3300 Rockford, IL 61101

4

CCCaaassseee:::      333:::111222-­-­-cccrrr-­-­-555000000222777      DDDooocccuuummmeeennnttt      ###:::      222333      FFFiiillleeeddd:::      000555///222555///111222      PPPaaagggeee      555      ooofff      555      PPPaaagggeeeIIIDDD      ###:::666888

CERTIFICATE OF FILING AND SERVICE I, JOSEPH C. PEDERSEN, certify that on May 25, 2012, in accordance with FED. R. CRIM. P. 49, FED. R. CIV. P. 5, LR5.5, and the General Order on Electronic Case Filing (ECF), the following document: AGREED MOTION FOR A PROTECTIVE ORDER DIRECTING THE INTERLOCUTORY SALE OF CERTAIN PROPERTY was served pursuant to the district court’’s ECF system as to ECF filers. /s Joseph C. Pedersen Assistant United States Attorney 327 South Church Street, Suite 3300 Rockford, Illinois 61101 815-987-4444

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