Crundwell's boyfriend seeks storage fees

DIXON – The longtime boyfriend of Rita Crundwell wants the government to pay him more than $4,000 for storing some of her property that the U.S. Marshal's Service recently seized.

The government countered with a motion to dismiss the petition of Jim McKillips. In essence, it says McKillips had failed to prove that he was required to move and store the items.

U.S. District Court Judge Phillip G. Reinhard has ordered both parties to resolve the claims. So far, those attempts have failed.

McKillips, of Beloit, Wisconsin declined Monday to say whether he was still in a relationship with Crundwell or to answer questions about his petition.

Crundwell, a former Dixon comptroller, was arrested April 17, 2012, and ultimately pleaded guilty to wire fraud for siphoning more than $53 million from city coffers over two decades. A federal judge ordered her to pay back that amount in restitution, of which the government has collected about $9.3 million from the sale of her horses, ranch, and other real estate and personal property.

A money judgment for about $53 million was also issued, meaning the government can go after about $106 million in Crundwell assets, current or future. The city also has received about $30 million in a lawsuit settlement with its former auditors and bank.

On May 26, the court ordered forfeiture of what the government called "newly discovered" assets, which included items held in storage at Pac Rat Mini-Storage in Beloit.

In his petition, filed July 1. McKillips said Crundwell's "trophy and awards collection and other various prizes and miscellaneous household goods and articles" had been placed into his possession, and he had paid $110 a month since October 2012 to store them.

As of July, McKillips said, he was billed more than $1,800 each on two storage units – $3,611.86 total. He also said he made "at least five trips" between Dixon and Beloit to transport the items, racking up $401.50 in mileage, using the IRS's rate of 55 cents a mile.

Additionally, McKillips says some of the items are his, including "old pictures," "household odds and ends" and "some of my old tack and shoeing supplies."

According to the government's motion to dismiss his claim, filed Aug. 14, McKillips was present July 21 and 22 when the government seized the stored property.

The U.S. Marshals Service "did not seize [McKillips'] personal photographs or objects clearly belonging to [McKillips] because they were outside the scope of the court's forfeiture order," the motion said.

McKillips must show he has a right to the property, either as a "bona fide purchaser" or by having "legal right, title, or interest in the property," and he has failed to do so, the government argued.

No hearing on the motion has been scheduled.