Rita Crundwell may no longer own her horses. But according to an official from the United States Marshals Service, she still earns money from them, even though she’s spent the last 16 months in a Minnesota prison.
But if federal officials have anything to say about it, that will change.
According to Jason Wojdylo, the Marshals’ Chief Inspector of the Asset Forfeiture Division, Crundwell continues to earn “breeder royalties” on her former horses. He said the American Quarter Horse Association [AQHA] and the American Paint Horse Association [APHA] have paid her between $13,000 and $15,000 annually since she was imprisoned.
“As long as those horses are alive and showing, she’ll be entitled to receive royalties,” Wojdylo said.
The former city of Dixon comptroller is serving a 19-year, 7-month sentence for committing the largest government embezzlement in U.S. history. Crundwell was ordered to pay back upwards of $107 million – $53.7 million apiece for simultaneous restitution and forfeiture judgments.
Much of what the government has already seized stems from Crundwell’s quarter horse showing and breeding business. Last month, the Department of Justice seized Crundwell’s trophies, awards and horse show clothes. In 2012, the government auctioned off 300 Crundwell horses and their semen.
Wojdylo estimated Crundwell horses earned her $14,000 in 2014. The government has frozen the money, but does not yet have access to it. Wojdylo said the proceeds are in Crundwell’s name, but federal officials are working to change that. If they do, then they’d be able to deliver the royalties to the city of Dixon.
Horse associations commonly set up what’s called a “breeders’ trust” which makes it possible for breeders to collect proceeds even if they don’t own a winning show horse. Breeders can earn money as a “subscriber” – a person who registers a stallion to sire foals; or as a “nominator” – the person who previously owned a foal that eventually earns money.
Different trust funds vary according to which horse association is in reference, said Candy Jebavy, director of the APHA’s breeders’ trust.
“If [show horses] have earned points, you can earn money back from the trust for those points,” Jebavy said. “It’s an incentive program for people to put their horses in. It pays back the nominator and the subscriber.”
According to APHA earnings statistics, Crundwell was a top-10 earner as a nominator every year after she started her prison sentence. Her APHA nominator earnings were $1,044.30 in 2012, $870.12 in 2013 and $1,147.71 in 2014. She also ranked sixth in subscriber earnings in 2014, taking in $2,764.10.
No breeder earning information was available from the AQHA.
Billy Smith, executive director of the APHA, said the checks are still made out to Crundwell. But the association is under court order to hand the checks straight to the government. Smith expects Crundwell horses will continue to generate money for years. Smith believes Crundwell has earned more breeder royalties for her quarter horses because she bred more of them.
“It should start to diminish over time,” Smith said. “But these horses can show into their 20s in some cases.”
LOOKING FOR LEADS
The government continues to pursue any leads it gets to other outstanding Crundwell assets, said Jason Wojdylo, the Marshals’ Chief Inspector of the Asset Forfeiture Division. He said that often times the government is made aware of assets based on leads from the public. He encourages anyone with information to email him at jason.wojdylo@usdoj.gov.
“Anybody who has any information about the location of those assets, I’m happy to hear from them,” he said.
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