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President Biden's latest Clemency Decision Sparks Debate (Not Involving Hunter Biden)
In an announcement labeled as "the largest single-day pardon event in contemporary history" by the White House, President Joe Biden granted clemency to 1,499 individuals, including a woman named Rita Crundwell, who had been convicted for misappropriating more than $53 million in public funds. This news has elicited dismay within certain circles, particularly in the town whose finances she had exploited.
Rita Crundwell
Prior to her imprisonment, Rita Crundwell, now 71, had resided in or near Dixon, Illinois, for the better part of her life. Dixon, which is also the birthplace of Ronald Reagan, is situated about 100 miles west of Chicago. The city has a history that traces back to John Dixon, who operated a rope-ferry service across the Rock River, a nearly 300-mile-long tributary of the Mississippi River. Today, Dixon is home to approximately 15,000 residents.
Crundwell commenced her government service with a work-study position in Dixon. In 1983, she was appointed as the city's comptroller and treasurer. Typically, treasurers are responsible for managing funds and safeguarding assets, while comptrollers serve as accountants. She maintained these roles until her termination in 2012.
Reports and government statements revealed that Crundwell was accused of embezzling $53.7 million from the city of Dixon over a period of two decades. With this ill-gotten fortune, she funded an opulent lifestyle, including the breeding of American Quarter Horses, a pursuit that seemed impractical with her $80,000 annual salary.
To carry out the fraud, Crundwell established a bank account disguised as a city account, serving as the only signatory. She moved funds from the city of Dixon to this account at a rate of about $2.5 million per year by generating misleading invoices. Despite the city's annual budget fluctuating between $8-$9 million, the discrepancy went unnoticed. However, the budget did reveal a shortfall, which forced Dixon to implement spending cuts, including to emergency services.
Like many municipalities, Dixon employed external auditors, Clifton Gunderson, but they consistently approved the city's financial statements. Eventually, the city filed a lawsuit against the auditors and the bank that facilitated the money transfers, resulting in an out-of-court settlement.
Crundwell was arrested by the FBI in 2012, following an investigation. Her leave was coincidentally timed, as the city's acting comptroller, Kathe Swanson, discovered the fraudulent account.
Upon her arrest, Crundwell agreed to liquidate the assets acquired through her multiple-decade embezzlement scheme. By her sentencing date, the U.S. Marshals Service had recovered more than $12.38 million from asset sales, including auctions of approximately 400 American Quarter Horses, vehicles, trailers, horse equipment, a luxury RV, a classic car, a pontoon boat, jewelry, and personal belongings. According to federal law, the government can pursue restitution for up to 20 years after an offender's release from prison.
In November 2012, Crundwell admitted guilt for wire fraud and money laundering. At the time, the Department of Justice described the case as "the largest public funds theft in [Illinois] state history."
Crundwell was sentenced to 19.5 years in prison, with a mandatory minimum sentence of 85% to serve. She was also ordered to repay the city of Dixon $53,740,394.
Crundwell was released in mid-2021 to serve the remaining years of her sentence in home confinement, as per provisions of the CARES Act applicable to certain non-violent inmates. Prior to the pardon, Crundwell was anticipated to be released from her home confinement on October 20, 2028.
(Crundwell was also indicted on 60 state counts of theft, alleging $11.2 million in misappropriated funds between April 2010 and the date of her arrest. These charges were considered a backup in case the federal charges did not lead to a conviction. Crundwell pleaded not guilty to state charges, which were subsequently dropped following her guilty plea in federal court. Illinois sentencing guidelines stipulate that state and federal sentences must run concurrently. A federal pardon, however, would not apply to any state sentence.)
Reactions
This development took many by surprise, including Glen S. Hughes, the mayor of Dixon. He conveyed to "Our Website" that he had no contact with the White House, stating, "No communication from the White House preceded this decision, and it seems pointless for me to engage afterwards."
In an email statement, he expressed his dismay, saying, "As Mayor of the City of Dixon, I believe that most of the City is likely stunned and perhaps enraged that President Biden would grant clemency to Rita Crundwell, the architect of what is believed to be the largest municipal misappropriation of funds in U.S. history. This incident is one that the City wishes to leave behind, but this action has only added to the wound."
Danny Langloss Jr., the city manager of Dixon, shared his sentiments about Rita Crundwell's clemency, stating, "The City of Dixon is appalled and dismayed at President Biden's decision to grant Rita Crundwell clemency for the largest municipal embezzlement incident in U.S. history. This action is a blatant miscarriage of justice and a direct insult to our whole community."
Langloss further expressed his confidence in the city's progress, stating, "Despite this unfortunate incident, the City of Dixon is thriving and has a bright future ahead of it. We will continue to prioritize our city's growth and make the most of the progress we've made."
The news of Crundwell's clemency also captured the attention of others outside of Dixon. In 2017, Kelly Richmond Pope, a CPA and a former contributor to Our Website, directed and produced "All the Queen's Horses," a film that delved into the intricacies of how Crundwell managed to pull off her theft for so long. Commenting on the commutation, Pope said, "The commutation of her sentence was a regrettable decision."
"What's more distressing is Crundwell's early release in 2021," she explained, adding, "I was stunned in 2021. Crundwell only served 8 and a half years of her 19-year, 7-month federal prison sentence. If it weren't for COVID, I believe Rita would still be in prison."
"I wonder," she mused, "whether Biden was aware of Crundwell's distinction as the largest municipal swindler in U.S. history, as this decision sends a confusing message."
Clemency vs. Commutation vs. Pardon
In addition to commutations, President Biden also pardoned 39 individuals who had been convicted of non-violent crimes. This is in addition to Biden's decision to pardon his son, Hunter Biden, who had pleaded guilty to gun and tax violations.
While the terms "clemency," "commutation," and "pardon" are often used interchangeably, they have distinct meanings.
A pardon is an act of executive authority that absolves an individual entirely of their crime. This absolution of guilt eliminates any related consequences, including the inability to hold public office or vote.
Article II of the Constitution grants the President the power to grant reprieves and pardons for offenses against the United States, excluding cases of impeachment.
A commutation, however, does not have the same extent of power. It reduces or eliminates the punishment for a crime but does not remove the conviction or guilty label.
Clemency refers to both pardons and commutations and encompasses any act of mercy or relief from punishment.
Biden's Commutations Follow Trump's Law
The White House stated that the commutations focused on individuals placed in home confinement during the COVID-19 pandemic and who had successfully reintegrated into their families and communities. To qualify for a commutation, individuals must have served their sentences at home for at least one year under the CARES Act.
The legislation, signed by then-President Trump on March 27, 2020, expanded the time that individuals could be placed in home confinement during the "covered emergency period" that commenced on March 13, 2020. To be eligible for the program, individuals must have no history of violence, terrorism, or sexual offenses; a clean disciplinary record for the preceding 12 months with no history of violence or gang involvement whatsoever while in prison; a viable release plan; a minimum (later amended to low) risk score on the Bureau of Prisons' risk-assessment tool; and had served a substantial portion of their prison sentence in custody and had been placed in a low or minimum-security facility. A report issued in 2023 indicated that since March 26, 2020, the BOP had successfully placed 13,204 individuals in home confinement under the law, with 3,627 inmates remaining in the CARES Act home confinement program as of May 27, 2023. The Attorney General finally finalized rules in 2023 to ensure that individuals placed in home confinement under the law were not unnecessarily returned to prison.
Biden's Pardons
Biden also pardoned 39 individuals who were convicted of non-violent crimes. Among those pardoned were several military veterans, including two 79-year-old retired U.S. Air Force airmen, one of whom pleaded guilty to a non-violent offense at the age of 20. You can see the list here.
Future Steps
Biden may yet take further action. According to the White House, "In the coming weeks, the President will take additional steps to give ex-offenders a second chance and continue to review additional pardons and commutations." Stay tuned.
- Rita Crundwell, the woman granted clemency by President Biden, was convicted for embezzling over $53 million from the city of Dixon using methods including wire fraud and money laundering.
- The clemency decision has elicited dismay in Dixon, where Crundwell had resided for most of her life and exploited the city's finances for over two decades.
- The clemency granted to Rita Crundwell is part of the largest single-day grant of clemency in modern history by President Biden, which included 1,499 individuals.
- The city of Dixon, whose finances were exploited by Crundwell, had to implement spending cuts, including to emergency services, due to the misappropriation of funds.