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Susan G. Bloom, CSR (815) 923-4104

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IN THE UNITED STATES DISTRICT COURT

FOR THE NORTHERN DISTRICT OF ILLINOIS

WESTERN DIVISION.

UNITED STATES OF AMERICA, ) Docket No. 12 CR 50027

)

Plaintiff, ) Rockford, Illinois

) Wednesday, November 14, 2012

v. ) 9:00 o'clock a.m.

)

RITA A. CRUNDWELL, )

)

Defendant. )

REPORT OF PROCEEDINGS

BEFORE THE HONORABLE PHILIP G. REINHARD

APPEARANCES:

For the Government: HON. GARY S. SHAPIRO

Acting United States Attorney

(327 S. Church Street,

Rockford, IL 61101) by

MR. JOSEPH C. PEDERSEN

MR. SCOTT PACCAGNINI

Assistant U.S. Attorneys

For the Defendant: MR. PAUL E. GAZIANO

MS. KRISTIN J. CARPENTER

Federal Defender Program

(202 W. State Street,

Suite 600

Rockford, Illinois 61101)

Also Present: MS. TRACI FEGRE

Pretrial Services

Court Reporter: Susan G. Bloom

7757 Somerset Drive,

Marengo, Illinois 60152

(815) 923-4104
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Susan G. Bloom, CSR (815) 923-4104

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THE CLERK: 12 CR 50027, USA v. Rita

Crundwell.

MR. PEDERSEN: Good morning, Your Honor. Joe

Pedersen and Scott Paccagnini on behalf of the United

States.

THE COURT: Good morning.

MR. GAZIANO: Good morning, Your Honor. Paul

Gaziano and Kristin Carpenter of the Federal Defender

Program here on behalf of Ms. Crundwell, who stands

to my right.

THE COURT: All right. Good morning.

This matter is set for a status, and I

see a plea agreement on my desk, and there was one on

my, a draft on my desk this morning when I returned

from vacation, so I presume that that's what's going

to happen. The matter is going to be a plea of

guilty this morning.

MR. PEDERSEN: That's correct, pursuant to

the plea agreement.

THE COURT: All right. Now, I know the

Marshals Office has said something to people who've

come in to attend this proceeding, make sure that

there's no device that anyone has that's on to record

or to record any of the proceedings or to photograph

or video any part of the proceedings. In addition,
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Susan G. Bloom, CSR (815) 923-4104

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all cell phones must be turned off. I don't want to

be interrupted during the course of this proceeding.

So, with that, people have been warned, and the

Marshals Office will take appropriate action if

something happens in contrary to my order.

Bear with me just a minute. I haven't

been here for a couple weeks, and so I have to get

materials before me relating to this matter.

(Brief pause.)

THE COURT: All right. I'm ready to proceed.

This is her first appearance on the

criminal matter before me? I think it is.

MR. GAZIANO: Actually, I think we had an

appearance back in -- well, that was --

THE COURT: It could have been on the civil

end of it.

So, you are Rita Crundwell; is that

correct?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: This matter has been set today

for a plea of guilty, if that's what you choose to do

in this case. I just want to make sure before I

start the plea proceeding that that's what you intend

to do this morning; is that correct?

DEFENDANT CRUNDWELL: Yes, Your Honor.
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Susan G. Bloom, CSR (815) 923-4104

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THE COURT: You have discussed this, I would

presume, thoroughly with your lawyers in the case?

DEFENDANT CRUNDWELL: Yes.

THE COURT: And this also includes a

forfeiture allegation in the indictment, and that

forfeiture allegation would be admitted as well; is

that correct?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: I have looked over the draft plea

agreement that had been placed on my desk this

morning, and I have a couple questions before we

proceed with the normal plea proceeding.

First of all, I'll address Mr. Pedersen.

There is stipulated conduct as I saw in Paragraph 7

of the plea agreement; is that correct?

MR. PEDERSEN: That's correct.

THE COURT: And I'm also aware just by

reading the newspapers that there's a matter pending

in state court, I guess is that Lee County?

MR. GAZIANO: That's Lee County.

THE COURT: Is any of the stipulated conduct

or relevant conduct a part of the allegations in the

state proceeding?

MR. PEDERSEN: I believe that all the counts

of theft that are alleged against her in Lee County
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Susan G. Bloom, CSR (815) 923-4104

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are the same conduct that is alleged to have occurred

throughout the scheme of fraud in this case.

THE COURT: All right. I'm just trying to --

ultimately, at the sentencing hearing, you're going

to ask me to consider conduct that is before a judge

in the state court.

MR. GAZIANO: No.

MR. PEDERSEN: Well, the scheme to defraud

that's alleged in the indictment began in 1990 and

went all the way through to her arrest. The Lee

County State's Attorney's Office has filed charges

against her relating to, I believe, a shorter time

period, maybe a two-year period. I'm not -- I don't

remember the exact dates.

THE COURT: But that conduct you're going to

ask that I consider ultimately if she pleads guilty

in the sentencing in this case. Is that correct or

not?

MR. PEDERSEN: It's all -- the scheme to

defraud encompasses all the money she took. They've

alleged that she took a portion of that money, so

ultimately, I guess, yes.

THE COURT: All right. That's what I'm

trying to figure out. I want her to be clear on

that, too.
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Susan G. Bloom, CSR (815) 923-4104

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Mr. Gaziano, I'll ask you this. You're

not her counsel in the state court proceeding.

MR. GAZIANO: We are not, Your Honor.

THE COURT: And do you anticipate, at least

at this point, that might be disposed of before her

sentencing hearing in this case?

MR. GAZIANO: Judge, I have no way of knowing

the answer to that.

THE COURT: All right. One other point that

I wanted to raise in looking at the plea agreement.

The statutory penalty here, and I'll explain this

more fully at the time during the course of the plea

proceeding, but the statutory penalty is a maximum

sentence of 20 years, which is for wire fraud. Is

that an offense that is a Class C felony?

MR. PEDERSEN: Correct.

THE COURT: Is that one that's probational or

not?

MR. PEDERSEN: Yes.

THE COURT: All right. I didn't see that in

the plea agreement. I want to make it clear that

while it may be probational, there's little

likelihood that she would get probation.

Do you understand that?

DEFENDANT CRUNDWELL: Yes, sir.
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Susan G. Bloom, CSR (815) 923-4104

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THE COURT: I've looked at the guidelines,

and the guidelines are significant as far as the

period of imprisonment. But you didn't have it in

there that she was eligible for probation, but I

wanted to let you know that, while eligible, could be

little likelihood of that.

Do you wish to proceed then with the

proceeding as it relates to both the indictment that

charges a criminal offense and as to the forfeiture

provision? The procedure that I'll be using is that

I will put you under oath, I'll ask you questions.

You must -- my questions are designed so that I know

that you're aware of all the rights that you would be

giving up as far as pleading guilty, and that you do

that knowingly and voluntarily, and that if you gave

me an untruthful answer to any of my questions, the

government could prosecute you for perjury.

If you don't understand a question just

stop me, and I'll try to explain it. If you want to

talk with Mr. Gaziano at any point in time, just ask

me, and I'll allow you to do so. Do you understand?

DEFENDANT CRUNDWELL: Yes.

THE COURT: Raise your right hand.

(Defendant duly sworn.)

THE COURT: All right. Give me your full
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Susan G. Bloom, CSR (815) 923-4104

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name.

DEFENDANT CRUNDWELL: Rita A. Crundwell.

THE COURT: And how old are you?

DEFENDANT CRUNDWELL: 59.

THE COURT: And do you still currently reside

in Lee County?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: You reside in Illinois?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: You've been given permission by

the probation office to establish some other

residence; is that correct?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: Prior to that, I take it you were

a resident of Illinois.

DEFENDANT CRUNDWELL: Yes.

THE COURT: How far did you go in school?

DEFENDANT CRUNDWELL: High school.

THE COURT: And was that Dixon High School?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And, at the present time, are you

taking any medications?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: What are you taking those for

might I ask?
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Susan G. Bloom, CSR (815) 923-4104

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DEFENDANT CRUNDWELL: Blood pressure, and I

have a bad back.

THE COURT: All right. Pain medication.

DEFENDANT CRUNDWELL: Yes.

THE COURT: Is that, the taking of those

medications, and you've taken them today --

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: -- is that in any way causing you

to be, let's say, cloudy or unclear about what I'm

talking to you about today?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: You're fully alert as far as you

are concerned; is that correct?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: Have you ever been in a hospital

or under a doctor's care for any mental condition?

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: All right. I'll find she's

competent to proceed today.

Have you had enough time to talk with

Mr. Gaziano and Ms. Carpenter about this case?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And have you told them everything

you know about the charges against you?

DEFENDANT CRUNDWELL: Yes, sir.
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Susan G. Bloom, CSR (815) 923-4104

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THE COURT: And you've discussed with them

whether you wish to go to trial on this case or plead

guilty.

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And you're satisfied with their

advise and efforts as your attorney.

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And has any other attorney other

than Ms. Carpenter and Mr. Gaziano given you legal

advice in this case that you're relying on?

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: Now, when I'm going to advise you

of your rights, I'm advising you of your rights as to

the criminal charge against you, but those rights

also, in most part, will apply to the allegation of

forfeiture. Do you understand that?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: In other words, I'll explain to

you what trial rights you have, and those apply as

well to the forfeiture in this case. Do you

understand?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: I'm going to go over the

indictment with you. The indictment charges you with

wire fraud, and I have to explain to you the material
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Susan G. Bloom, CSR (815) 923-4104

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elements of that charge and what the government must

prove beyond a reasonable doubt. The indictment

charges that at one time, you were employed as the

comptroller for the City of Dixon, you handled

finances for the City of Dixon, and that the City of

Dixon maintained a money market account, and that,

and that account, the funds were deposited in that

account representing certain monies that were

deposited for the trust of the City of Dixon, which

would include various taxes distributions made by the

State of Illinois and other taxes, and that the City

of Dixon also maintained an account called a Capital

Development Fund, and that was at a particular bank

as was the other money market account.

The indictment further charges that

beginning at least as early as December 18, 1990, and

continuing to on or about April 17, 2012, in Dixon,

in the Northern District of Illinois, Western

Division, you knowingly, and it's important the

government has to allege the dates that I've just

given you, and that they have to allege and prove

that you knowingly devised and intended to devise a

scheme to defraud and obtain money from the City of

Dixon by means of making material false and

fraudulent representations. And the scheme that is
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Susan G. Bloom, CSR (815) 923-4104

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alleged in detail in the indictment is, I'm going to

summarize that, but it alleges that the scheme was

one that you devised to obtain more than $53 million

from the City of Dixon, and that you had opened an

account in the name of the City of Dixon called the

RSCDA account and maintained that account apparently

without the knowledge of the City of Dixon officials.

And that you, being comptroller, were one who was in

charge of the other two bank accounts that I

mentioned, money market account and the Capital

Development Fund, and that as a part of the scheme,

when that, when the RSCDA account was opened, funds

were, belonging to the City of Dixon, were

transferred into that account, and that they were

used, those funds were used to pay for personal and

private business expenses, and that there were

transfers made and that they were made from

time-to-time over that period of approximately

12 years [sic], and that some of the transfers were

made by use of a wire, the wires, and that various

property was purchased by you from city funds that

were put into the RSCDA account. And that you took,

as part of scheme, you took efforts to conceal the

fraudulent scheme from various other public

officials.
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Susan G. Bloom, CSR (815) 923-4104

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` And that on or about November 2, 2011, for

the purposes of being part of executing the scheme

that I've just described, you transmitted by means of

a wire communication which went into interstate

commerce certain signals which represented a fund

transfer in about $175,000 from the Federal Reserve

Bank in St. Paul, Minnesota, to the Federal Reserve

Bank in Cincinnati, Ohio, for a credit to the City of

Dixon Capital Development Fund at the Fifth Third

Bank in Dixon, Illinois.

Those are the material allegations that

the government has to prove; that is, that this was

done knowingly, that it was a scheme that was --

where you made fraudulent misrepresentations, and

that some of the transactions occurred by use of a

wire communication. Do you understand those

allegation?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: Do you have any questions about

that?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: There is also a forfeiture

allegation that is part of the indictment, and that

forfeiture allegation list appears to me like

probably twenty plus items that the government seeks
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Susan G. Bloom, CSR (815) 923-4104

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to forfeit. They're saying that these items were

derived from the fraudulent transactions that I've

just described as far as the criminal charge, and

that these items that they seek to forfeit are both

real estate and personal property. You understand

that as well.

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And you understand that is

separate, it's a part of the indictment, but it's

actually a separate proceeding of forfeiture that if

you were convicted of the wire fraud, you also would

then have a separate right to contest the forfeiture.

Do you understand that?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: Is there anything at all that you

want me to explain further as it relates to the

criminal charge or the forfeiture?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: And you've talked at length with

your attorneys about this; have you not?

DEFENDANT CRUNDWELL: Yes.

THE COURT: All right. There is a plea

agreement that has been given to me --

MR. PEDERSEN: Your Honor, I'm sorry to

interrupt. You indicated as far as the forfeiture
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Susan G. Bloom, CSR (815) 923-4104

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allegation that there are numerous items that she's

agreeing to forfeiture. There's also -- she's also

agreed as part of the plea agreement to entry of a

forfeiture judgment --

THE COURT: All right.

MR. PEDERSEN: -- in the amount of

$53,740,394 as part of the plea agreement.

THE COURT: That's just part of the plea

agreement.

MR. PEDERSEN: Well, it was alleged as a part

of the indictment, too, that we were seeking a

forfeiture judgment.

THE COURT: All right. Do you understand

that, that you agreed to a judgment in the amount of

approximately $53 million?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: All right. The plea agreement

that I have in front of me is 26 pages, 37

paragraphs. It is dated today, signed by the U.S.

Attorney, by the Assistant U.S. Attorney here, and

it's signed by your attorneys. And did you sign that

today?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: Prior to today, I take it, you

had seen a draft of this agreement?
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Susan G. Bloom, CSR (815) 923-4104

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DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And have gone over it with your

lawyers.

DEFENDANT CRUNDWELL: Yes.

THE COURT: And you both read it and had it

explained to you by your lawyers?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And did you understand it?

DEFENDANT CRUNDWELL: Yes.

THE COURT: Did anybody force you to sign

this plea agreement?

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: This agreement, among other

things, has certain agreements that you have made

with the government as far as cooperation with

documents and other materials that you agreed to

disclose to them. Is there anything in that

agreement that you think a government agent made to

you a promise that is not included in the plea

agreement?

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: Now, if you plead guilty today,

you understand that eventually a sentencing hearing

will be set, that this is called a plea agreement

because there are certain agreements between yourself
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Susan G. Bloom, CSR (815) 923-4104

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and the government, but as far as the sentence in

this case and as far as the guidelines, which I'll

explain to you in a few minutes, I'm the one that

will ultimately sentencing you, that there's no

agreement as to what the sentence is. And as to the

guidelines, even though your lawyer and the

government may agree on some guidelines, I have to

independently determine whether they're applicable.

Do you understand that?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And in this case where you would

plead guilty, you cannot withdraw the plea of guilty

just because the government may recommend, your

counsel may recommend certain guidelines being

applicable, and they may agree, but I may not agree,

and as to the sentence, they may or may not agree

what the sentence ought to be in this case, but I'm

the one that's going to determine that. I may not

following those recommendations, and they may not

agree. All I'm asking you is, you understand that I

will make those decisions, and you cannot withdraw

the plea of guilty just because I don't follow your

counsels' recommendations or the government's

recommendation. Do you understand that?

DEFENDANT CRUNDWELL: Yes, Your Honor.
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Susan G. Bloom, CSR (815) 923-4104

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THE COURT: There is an obligation that this

Court has to determine, and that is, upon a plea of

guilty whether there is a factual basis to support

the plea of guilty that would support a conviction

beyond a reasonable doubt, and I have to be submitted

facts that would convince me that the government, as

far as the factual basis that they have set forth in

the plea agreement, would meet those requirements. I

have reviewed the factual basis which is set forth in

the plea agreement in Paragraph 6 beginning on Page 2

and continuing on to Page 5, and I have determined

from reading that that it does provide a factual

basis for the plea of guilty, but I want you to

answer my questions.

First, you've read that factual basis as

set forth in Paragraph 6 of the plea agreement.

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: And do you have any dispute with

those facts?

DEFENDANT CRUNDWELL: No, sir.

THE COURT: You committed the crime as stated

in those -- in Paragraph 6; is that correct?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: Now, in Paragraph 7, which starts

on Page 5 and goes through into Page 8, there are
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Susan G. Bloom, CSR (815) 923-4104

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facts which you had stipulated to which we call

relevant conduct, and that is, those are facts that

you haven't been charged with but they're conduct

that I can consider at the time of sentencing.

You're aware of what's in Paragraph 7?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And do you have any dispute with

that?

DEFENDANT CRUNDWELL: No, sir.

MR. PEDERSEN: Your Honor, actually, she is

stipulating that she committed that as an additional

offense even though she was not charged with it --

THE COURT: All right.

MR. PEDERSEN: -- so, I guess it might be

considered relevant conduct, but it is actually a

stipulated offense.

THE COURT: All right. It is -- relevant

conduct uses conduct that is not charged, but it's

conduct that the Court may consider during the course

of a sentencing procedure, if it's relevant and it's

credible. Now, in this case, Paragraph 7 constitutes

both relevant conduct, and you're stipulating to

conduct that is a criminal offense. Do you

understand that?

DEFENDANT CRUNDWELL: Yes, Your Honor.
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Susan G. Bloom, CSR (815) 923-4104

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THE COURT: And that's what you intend. Is

that right, counsel?

MR. GAZIANO: Yes, sir.

THE COURT: All right. I'm going to just

briefly explain to you what happens assuming you

progress through this proceeding and, ultimately,

enter a plea of guilty and admission of facts which

would support a forfeiture. The case then would be

set for sentencing hearing. And at a sentencing

hearing, I first determine what the guidelines would

be in terms of criminal offense level and in terms of

any prior history that you have.

In the Federal System, we have a point

system, and that calculates, we're really looking at

two separate factors. One, is the offense that you

committed, and the guidelines will consider all the

facts surrounding that offense, and there'll be

points that are assessed for the commission of the

offense and points which would be potentially

applicable as it relates to all the other

circumstances of the offense, such as the amount of

money that was fraudulently taken. There's more

points in a $53,000,000 fraud than somebody who might

have defrauded $10,000, and that's how these points

are ultimately added up. Do you understand that?
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Susan G. Bloom, CSR (815) 923-4104

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DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And you get points, good points

for accepting responsibility in a timely fashion,

which the government has said you're entitled to

today. The other thing the Court will look at as far

as the sentencing guidelines will be any criminal

history that you may have for which points are

attributed to under the sentencing guidelines.

Once I found those, the total points on

each of those factors, then I go to a guideline

manual, and that guideline manual will present a

guideline range based upon the criminal offense,

conduct, and based upon any prior history. That

advisory range that I reach is exactly that. It's

advisory. I can sentence you within the guidelines,

below the guidelines, or above the guidelines, so

long as the sentence is not over the statutory

maximum. The Court will listen if there are

objections by either the government or by you to the

probation officer's calculation of those guidelines,

I will listen to those, and I will determine those.

I have no idea at this point what those guidelines

calculate to be other than what you've, the sides

have suggested that there are some points that they

agree upon, and there may be some disagreement. But,
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ultimately, I will make that determination and find

what are the guidelines. Then, after that, I'll

determine what's the appropriate sentence in this

case using the statutory factors set forth in

Section 3553(a). So, that's what will happen. Do

you basically understand that?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: All right. I'm going to now

going to advise you of your trial rights. First of

all, you have the federal defender representing you,

and they are here to assist you, and they are here as

your lawyers, not just to have you plead guilty, but

if you wanted to go to trial, do you understand that

they would represent you at trial?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: You also have entered a plea of

not guilty before the magistrate judge in this case.

You have a right to persist or continue in that plea

of not guilty and go to trial on that as well as the

allegation of forfeiture. Do you understand that?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: There are certain rights that you

would have if you selected a trial. First of all,

you would be present at the trial. You would be able

to see and hear all the government witnesses and
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evidence that they present in the case. Your lawyer

would have the opportunity to cross examine those

witnesses, and you would have a right to bring in any

witnesses in your own behalf. You can use the

subpoena power of this court to do so.

You also have a right to testify in the

case, if you so desire, but nobody can force you.

You have a Fifth Amendment Right not to testify, and

even this Court cannot compel you to testify in the

case.

In addition to those rights, the

government has the burden to prove you guilty beyond

a reasonable doubt. You have no burden in the case.

The Court would also advise you that you are presumed

to be innocent of the charges against you, and if

there were a jury trial, I would so inform the jury

that you are presumed innocent. Those are the trial

rights that you have. And as it relates to the

burden in this case, government has the sole burden

to prove you guilty beyond a reasonable doubt. You

don't have to offer any evidence or testify. You can

rely on the presumption of innocense. Do you

understand all of your trial rights?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: There are two types of trial.
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One is a bench trial, and that's a trial in front of

me only. That's where I listen to all the evidence,

and I determine after listening to all the evidence

whether the government has proved its case beyond a

reasonable doubt. If you choose that method of

trial, then you would have to give up your right to

trial by jury, your lawyer would have to agree to

that, the government would have to agree, and so

would I. Do you understand what a bench trial is?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: The other type of trial is a jury

trial, and that's where we bring in potential jurors

from this district and division. I question them to

make sure that they would be fair and impartial to

you and the government. If I felt that any juror

would not be fair, I would excuse that potential

juror for cause. You and your lawyer have a right to

excuse up to ten jurors for any reason except based

on that juror's race or that juror's gender, and in

that way, you're able to participate in the jury

selection process. In addition to that, you're

participating by your lawyer and the government

submitting questions that I would ask the jurors.

Once we have twelve jurors that I

believe are fair and impartial as to both sides, then
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they're sworn in, and we conduct a trial, and the

jurors are the sole people who will determine your

guilt or innocence, I preside, and I rule on matters

of law, and if you're found guilty, I'm the one that

will sentence you, but your guilt or innocence would

be decided by a jury. And at the end of the case,

the jurors go back in secret, all twelve of them, and

the only way you can found guilty is if all twelve

vote that you're guilty and sign the guilty verdict

and return that into open court.

If all twelve vote that you're not

guilty and return that verdict into court, then you

cannot be tried again for this offense.

If the jurors are split, some for

guilty, some for not guilty, and after a reasonable

amount of time has gone by and they still have not

been able to unanimously agree to a verdict, I could

declare a mistrial, and the government could elect to

try you over again. Do you understand what a jury

trial is?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: Do you further understand if you

plead guilty, you give up your rights to a trial.

There is no trial, but there is a sentencing hearing.

Do you understand that?
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DEFENDANT CRUNDWELL: Yes.

THE COURT: Now, if you plead guilty, there

are certain other rights that you give up after I

sentence you on appeal. There is a process that

would follow in any criminal case where after I

sentence a person, if they haven't given up all their

appeal rights, they have a right to appeal to a

higher court who would review what I have done. But

when you plead guilty, there are some issues that you

could not raise on appeal. You cannot raise any

issue as it relates to any trial error that might

have occurred because there is no trial. In addition

to that, any motion that could have been made or was

made prior to trial is waived so that there's no

right to appeal any such issue. You can appeal the

sentence, my calculation of the guidelines, and any

other error that I might have made today or in any of

the proceedings that have occurred, but you can't

raise those items that I've just told you about. Do

you understand that?

DEFENDANT CRUNDWELL: Yes, Your Honor.

THE COURT: All right. You said that you

understand all of your rights as it relates to

criminal trial. Is it your desire to give up those

rights?
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DEFENDANT CRUNDWELL: Yes, sir.

MR. PEDERSEN: Your Honor, if I could just

interrupt. I don't think the defendant was advised

of all the maximum penalties that she faces.

THE COURT: That's right. I was going to --

I usually do that earlier, but I'm glad you did that,

reminded me.

This is a Class C felony, and I must

advise you, of course, of the potential penalties,

and it carries a maximum penalty of imprisonment of

20 years. And I'm telling you what the maximum is,

doesn't mean you will get the maximum, but I must

advise you, according to rules, what the maximum

penalties are. So, the maximum penalty of

imprisonment is 20 years. As I've told you, it is

one that is probationable. In addition to that, the

offense carries a maximum fine of $250,000 or twice

the gross gain or gross loss resulting from the

offense, whichever is greater.

In addition to those penalties, the

Court would advise you that after any term of

imprisonment that I would sentence you to, you would

also be serving a period of time after imprisonment

which we call supervised release, and that is not

more than three years. So that would be, you would
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be serving that after any period of imprisonment.

And supervised release is like being on probation

except it follows sentence, and if you violated any

of the terms or conditions of your supervised

release, you could have it revoked, and I could

resentence you to another term of imprisonment.

In addition to those penalties, the

Court would order restitution to any victims in this

offense, and I must assess you a statutory special

assessment of $100. Anyone who is convicted of a

felony must pay that $100 special assessment. So,

those are the penalties. Are you -- do you have any

question about that?

DEFENDANT CRUNDWELL: No. No, sir.

THE COURT: Now, as to your plea in this

case, is any -- has anybody forced you in any way to

plead guilty today if that's what you choose to do.

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: And as to the giving up your --

of the forfeiture allegations, you understand that

you would have those same rights to a trial that you

have in the forfeiture and that you would be entitled

to all those rights and that you would be giving

those up and agreeing to a forfeiture in this case,

assuming you plead guilty. Is that what you
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understand?

DEFENDANT CRUNDWELL: Yes, sir.

THE COURT: And that's what you wish to do;

is that correct?

DEFENDANT CRUNDWELL: Yes.

THE COURT: All right. As it relates to the

charge of wire fraud, which I have explained to you,

at this time do you plead guilty or not guilty?

DEFENDANT CRUNDWELL: Guilty.

THE COURT: And as to the forfeiture

allegation, which I have explained to you, at this

time do you admit or deny those allegations?

DEFENDANT CRUNDWELL: I admit.

THE COURT: All right. Is there anything

else that either counsel would have to add at this

time that I should ask her, or are you prepared for

me to make my findings?

MR. PEDERSEN: No, Your Honor. Not that I'm

aware of.

MR. GAZIANO: Make your findings, Your Honor.

THE COURT: All right. Ms. Crundwell, since

you acknowledge that you are in fact guilty as

charged in the indictment and having the assistance

of able counsel, I will accept the plea of guilty. I

will find that you -- I will also accept the plea
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agreement, and I will find that you have been advised

of your rights, you understand them, the

consequences, and the possible punishment, and

persist in pleading guilty. I will further find

there's a factual basis for the plea of guilty, and

the plea of guilty was made voluntarily and without

any threats or promises. I'll make the same findings

as it relates to the forfeiture allegations. I'm now

going to enter judgment of guilty on her plea and the

judgment of forfeiture.

The next thing that will happen is that

you will be interviewed by a probation officer

probably within the next two weeks, and she will ask

you questions about the offense, about your

background, and about any criminal history that you

may have. If you were to materially misled or give

false answers, material answers to a probation

officer in this process, you could obstruct justice.

I advise all persons who plead guilty of this. Mr.

Gaziano will be present during the course of that

interview with the probation office, so if you're

unclear about any question, just stop and ask for his

advice.

The defendant has been on, I take it, a

recognizance bond since the magistrate judge ordered
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Susan G. Bloom, CSR (815) 923-4104

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that some time ago. Is that right, Mr. Gaziano?

MR. GAZIANO: That's correct, Your Honor.

THE COURT: And she would be, remain on that

bond pending a sentencing hearing; is that correct?

MR. PEDERSEN: Well, Your Honor, once she's

entered a plea of guilty, the presumption is

detention unless she can show by clear and convincing

evidence that she's not a flight risk. Based on the

amount that was taken, the defendant's age, the

length of the potential sentence that she's facing,

we believe that she does present a risk of flight,

and that in order for her to be released, she needs

to rebut that presumption by clear and convincing

evidence.

THE COURT: Mr. Gaziano.

MR. GAZIANO: Judge, thank you.

The government is correct. 18-1343 does

indicate that the presumption does switch. The

burden is not an impossible burden. I would call the

Court's attention to the follow factors:

Lee County or Northern Illinois is Ms.

Crundwell's home area. It's where she's born and

raised. Her relatives continue to live here. She

has no place to fee. She has no resources with which

to flee. Had she wanted to flee, she would have done
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so sometime shortly after April.

During the period of time between April

until today's date, I would assert to the Court that

Ms. Crundwell has, one, regularly maintained court

appointments; two, regularly maintained appointments

with us; and, three, has regularly and at a moment's

notice, met with government officials to assist and

cooperating in and help arrange the sale of numerous

assets, all with the hope of recouping some loss for

the City of Dixon. She's worked hard with the

government, and I believe that the government would

even stipulate to the fact, that there have been

numerous meetings regarding this. She did not have

to do that.

The Pretrial Services report which was

originally shown to the Court in April showed that

she's had no history of foreign travel and has no

passports. She has had -- I believe Ms. Fegre from

the Pretrial Services office is here. She would

indicate to the Court that there have been no

violations of any kind during the time of pretrial

release. I think Ms. Crundwell is not a risk to

flee. She's been a most cooperative client. She's

been exceptional and all times and has worked to

encounter this matter on a timely basis.
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THE COURT: Thank you.

The Pretrial Services officer here,

would you step forward, please? Identify yourself

for the record.

MS. FEGRE: Yes, Your Honor. Traci Fegre

with U.S. Pretrial Services.

THE COURT: And as I understand it, you have

not been her direct supervisor, that she had been

supervised during the period of time that she's been

on release to this point in time by somebody, some

other probation -- Pretrial Services officer.

MS. FEGRE: Yes, Your Honor. I have been in

regular contact with that officer helping to

monitoring Ms. Crundwell, and they have reported that

she's been in compliance. There's been no issues or

violations reported.

THE COURT: Is there any reason that she or

you would change their recommendation?

DEFENDANT CRUNDWELL: No, Your Honor.

THE COURT: And you believe that she meets

the requirements of the statute for continued

release.

MR. FEGRE: Yes, Your Honor. We would not

recommend any changes to bond at this time.

THE COURT: All right. Thank you.
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MS. FEGRE: You're welcome.

THE COURT: The Court reviewed the initial

report which was, went back --

MR. GAZIANO: April.

THE COURT: -- did you say April of, was it

of this year?

MR. GAZIANO: Yes.

THE COURT: I've reviewed that and listened

to what the government has said. I have plenty of

these cases that are financial fraud cases, and in

most, if not all the cases, unless some evidence can

be shown that rebuts what Mr. Gaziano has said here,

I think based upon what the probation -- Pretrial

Services officer has said, the defendant has met the

burden to show by clear and convincing evidence that,

one, she's not a potential danger to the public by

continued release, and, two, that there's no evidence

she is a flight risk, therefore, the government --

denying any motion by the government for her

incarceration at this time.

The next remaining item will be to set a

sentencing date. Do we have a -- usually you've

talked with the probation office. When can they, it

usually takes 90 days, when can they be finished and

ready?
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THE CLERK: February 14th.

THE COURT: As both counsel know, I'm gone

quite a bit of the time during the winter being the

senior judge taking a reduced caseload. I will be

back for a period of time around the 14th. The

sentencing would have to be either within those two

or three days. I'm going to look and see what dates

those would actually be. I think I'm here on the 13,

14, 15, and 18th, but I think the 18th is a holiday.

THE CLERK: That's correct.

THE COURT: So, I'm going to ask you because

there may be things that you wish to prepare for

that's going to take longer than that, longer than

being ready on the 14th.

MR. PEDERSEN: The government would be ready.

I would just advise the Court, let you know, at this

point we anticipate calling at least one witness in

regards to the dispute over the guideline

calculations on the money laundering. Also, we

anticipate calling three or four witnesses in

aggravation as far as the Court's consideration of

the 3553(a) factors.

THE COURT: Are you talking a half day then?

MR. PEDERSEN: Yes.

THE COURT: At most?
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MR. PEDERSEN: Yes.

THE COURT: All right.

Mr. Gaziano, can you be prepared on one

of those dates that I gave?

MR. GAZIANO: I just had a question. When

would the presentence investigation be delivered to

us?

THE COURT: That would be -- you'll have the

timetable before -- the normal timetable.

MR. GAZIANO: I was just confused when she

said February 14th.

THE COURT: That would be when I could set

the sentencing, and the report would be prepared

usually a month before that.

MR. GAZIANO: Judge, our office is available.

THE COURT: All right. Let me, I have a

calendar in front of me, Jen, and I know I've already

set some sentencing matters for that week. What day

looks best rather than Wednesday, the day, the first

day back. How about the Thursday or Friday?

THE CLERK: You currently have nothing

scheduled on Thursday, the 14th. Friday, you have

one sentencing at 9:30.

THE COURT: Let's do it on Thursday.

Do you want to do it at 9:00 o'clock or
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Susan G. Bloom, CSR (815) 923-4104

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would you prefer 1:30?

MR. GAZIANO: Well, Judge, I would prefer

9:00 o'clock because if we're wrong in our estimate.

THE COURT: Okay. All right. We will set

this matter for sentencing on the 14th; is that what

you said, Jen?

THE CLERK: Yes.

THE COURT: At 9:00 o'clock. Obviously, I

will expect that the probation office finishes the

Presentence Investigation Report. They usually do it

at least a month before that time, not longer. And

they'll be deadlines for objections and for response

to any objections. Make sure those are timely. I

don't want to have to continue this. It's my usual

practice is not to continue a sentencing hearing

unless during both your evaluations there's a problem

that you both jointly think there ought to be a

continuance. Then I'll consider that.

All right. Is there anything else at

this time?

MR. PEDERSEN: No, Your Honor.

MR. GAZIANO: No, Your Honor.

THE COURT: I'm going to advise the defendant

that I've allowed you to remain out on the same bond

that you were on under the same conditions that the
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Susan G. Bloom, CSR (815) 923-4104

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magistrate judge set. You're to report, and you're

under those same conditions. Make sure you don't do

anything that would jeopardize that or being in

violation of the magistrate judge's order allowing

you to be released.

So, with that, I have nothing more in

this case. We'll see you on the 14th.

MR. GAZIANO: Thank you, Your Honor.

MR. PEDERSEN: Thank you.

THE COURT: That's all.

I've got another case that begins in

five minutes. I'm going to take a recess, and then

we will proceed with that.

(Which were all the proceedings

had in the above-entitled cause

on the day and date aforesaid.)

I hereby certify that the foregoing is a correct

transcript from the record of proceedings in the

above-entitled matter.

Susan G. Bloom, CSR

No. 084-001546