City Sues CLA Over Undetected Embezzlement

The city of Dixon, Ill., is suing its accounting firm, CliftonLarsonAllen, contending it should have detected the embezzlement by city employee Rita Crundwell, who has pleaded guilty to federal wire fraud charges in connection with the theft of almost $54 million from the Dixon city treasury over 20 years, reported.

Dixon city officials are suing ClintonLarsonAllen for the full amount of the loss. The accounting firm tells Crain’s Chicago Business that it was not required to do the testing that might have uncovered the Crundwell fraud.