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She was fired in April 2012 after the discovery that she had embezzled .7 million from the city of Dixon for over twenty-two years to support her championship American Quarter Horse breeding operation.

On December 8, 1990, Crundwell opened a secret bank account named the Reserve Sewer Capital Development Account (RSCDA), making it appear to be a city account. Crundwell would have money deposited into another account called the Capital Development Fund, create false state invoices, and then write checks from the fund payable to "Treasurer," which she would deposit into the RSCDA account.

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