Hacker Newsnew | past | comments | ask | show | jobs | submitlogin
[flagged] She Stole $54M from Her Town. Then Something Unexpected Happened (politico.com)
12 points by rishabhd on Feb 18, 2024 | hide | past | favorite | 13 comments


For those not swayed by the clickbaity title, here's a ChatGPT summary (prompt: "Summarize this article in 10 sentences or less, and focus on what changed in Dixon):

"Following the exposure of a staggering $54 million embezzlement by comptroller Rita Crundwell, Dixon, Illinois, underwent profound changes to prevent future fraud. The city, reeling from the largest municipal fraud in U.S. history, sought to rebuild trust and strengthen governance. It accomplished this by overhauling its government structure, introducing more transparency and professional management. These reforms included redesigning the city's form of government in 2015, which led to the election of new city council members and the former Tea Party activist Liandro Arellano, Jr. as mayor. Additionally, the recovery of approximately $40 million through the auctioning of Crundwell’s assets and lawsuit settlements facilitated significant infrastructural improvements. Streets were smoothed, public facilities renovated, and financial health restored as Dixon paid down $21 million in debt before making new investments. These efforts have not only improved Dixon's fiscal outlook but also contributed to a cultural and economic revival, positioning the city as an example of resilience and proactive governance in the face of profound betrayal."


> Additionally, the recovery of approximately $40 million through the auctioning of Crundwell’s assets and lawsuit settlements

Wow, how did she manage to incinerate $14M in value? Oh, it's worse than that:

> The U.S. Marshals auctioned off Crundwell’s assets, which were really Dixon’s — including five properties, dozens of cowboy hats, $250,000 worth of jewelry, 400 horses and a large quantity of horse semen that fetched $98,500 — clawing back about $10 million for the city. The city got roughly a further $30 million in lawsuit settlements from the auditors and bank involved, neither of which had caught on to the theft.

She incinerated $44M in value but the town got a huge windfall from its auditors because they didn't notice.


these were illiquid assets being sold at once in a firesale. the US Marshalls flooded the market and got bad prices.

routinely check government auctions for these bad trades, lots of deals to be had


I posted something similar on a code editor post (Zed) and it got flagged and removed with two negative comments. Might be worth it to ask mods for clarification.

I personally don't understand the allergy to LLM assisted posting so long as it is clearly marked. It makes me think of proto-humans running into an unfamiliar tribe of not-quite-the-same-type-of-human and instinctually responding with violence. Maybe I'm thinking of that Prometheus movie.


I made it three paragraphs into this article before scrolling down way faster, seeing zero point being reached, and doing the same thing with chatgpt4

“What did Crundwell do in dixon illinois”

I was also going to paste it here but HN site kept “not serving requests” and then this post was flagged by the time the site worked again.

Common HN experience


A fascinating article that raises so many questions. How and why does someone accumulate and store one hundred thousand dollars worth of horse semen? That sounds like a mind-boggling amount of horse semen. Are there special horse semen freezers with backup generator systems? God forbid all that horse semen should go off if there's a power outage. Is there a special market for horse semen? How do you demonstrate the provenance of your horse semen to potential buyers? How do you test the potency of horse semen after taking out out of storage? Does anyone freeze horse egg cells, or just horse semen? Is horse semen a sensible investment vehicle? How does the value of horse semen change over time? I wish the article had gone into significantly more detail about this important aspect of the story.


> Is there a special market for horse semen?

yes, the breeding market is insane at the moment and has its own inefficiencies.


It's probably less volume and effort than you think.


You Won’t Believe What Happened Next!!!

No chance we want to allow HN posters to cool down the article’s original title when it’s especially clickbaity?


It's a pity the title is that bad, because the article is good


It’s really not

I think novels should be for books, and long form journalism with this mountain of exposition before the point should die. It just feels like this author couldnt make a living writing novels and burdens us in an online newspaper instead.

It did get me interested enough to ask chatgpt what Crundwell did. Rita Crundwell, for an article that also couldnt get to the point about her first name due to some other ritualistic journalism idea that merely frustrates


Season 3 of the "Crooked City" podcast was all about this and an entertaining listen if this article got you hooked: https://www.iheart.com/podcast/867-crooked-city-dixon-il-997...


This story appears quite similar to the scandal at the Texas fruitcake bakery https://collinstreet.com/blog/the-sandy-jenkins-embezzlement...

In both cases there was a single person that both managed the books and executed transactions. They gained enough trust of their peers so nobody second guessed their lavish lifestyle.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: