City tax workers accused of theft

The Washington Times ^ | 11-8-07 | Gary Emerling

[JZelle]

Two employees in the D.C. Office of Tax and Revenue have been arrested in connection with the theft of at least $16 million in a "massive" scheme involving fraudulent property-tax refunds, federal officials said yesterday.

"There is no greater relationship in government than the one between the taxpayer and the officials in charge of spending and keeping the dollars that we get from the taxpayers," said Mayor Adrian M. Fenty, a Democrat, who appeared at a press conference with federal officials to announce the arrests. "If these allegations are true, then that very serious relationship has been breached."

Harriette Walters, manager of the D.C. Real Property Tax Administration Adjustments Unit, and Diane Gustus, a real property program specialist in the tax and revenue office, were arrested along with three residents of Bowie in what is being called the largest theft in D.C. government history.

Miss Walters, 51, and Miss Gustus, 54, are accused of preparing or approving at least 42 fraudulent property-tax refund checks averaging more than $388,000 each, according to court documents.

The scam netted at least $16 million, which officials said was then deposited into sham corporate accounts controlled by Miss Walters' relatives.

The scam netted at least $16 million, which officials said was then deposited into sham corporate accounts controlled by Miss Walters' relatives.

Officials said that the scheme dates to at least 2004 and that the suspects spent the money on items such as jewelry, clothing and vehicles.

The documents say Miss Walters spent more than $1.4 million at Neiman Marcus since September 2000. Agents also seized fur coats, designer bags and a 2005 Bentley from the suspects as part of the investigation.

[2banana]

The documents say Miss Walters spent more than $1.4 million at Neiman Marcus since September 2000. Agents also seized fur coats, designer bags and a 2005 Bentley from the suspects as part of the investigation.

And I just thought she worked for the government and could afford it...