D.C. Tax Workers Charged In Scam2 Accused of Taking $16 Million Worth Of Illegal Refunds

The Washington Post ^ | November 8, 2007 | Carol D. Leonnig, Clarence Williams and David Nakamura

[khnyny]

Two mid-level D.C. government employees used phony paperwork to collect more than $16 million from illegal tax refunds, avoiding detection for at least three years while issuing more than 40 checks cashed by friends and family members in on the scam, prosecutors said yesterday.

By day, Harriette Walters and Diane Gustus worked at the District's Office of Tax and Revenue. In their free time, prosecutors said, they worked with others to raid the city's treasury to stock up on luxury items including fancy cars, homes, furs, precious jewelry, designer handbags and clothing. Walters alone spent more than $1.4 million at Neiman Marcus, according to charging papers.

Authorities called it the largest theft ever uncovered in local government in the Washington area. Four top officials in the tax office resigned yesterday amid criticism that they did not spot what was going on. About $4 million of the money has been found, authorities said.

[khnyny]

This is the largest theft ever uncovered in local government in the Washington area. Within two days of this article being published, the total has somehow risen from $16 million to $20 million being stolen.

[rb22982]

Assuming this isn’t eligible for the death penalty, lock them up for life and throw away the key.

[nuconvert]

“This is the largest theft ever uncovered in local government in the Washington area.”

I’ve been a little out of the loop lately, but I haven’t heard anything about this until today.

[xtinct]

More to this story:

CFO's Office Under Seige

CFO Natwar Gandhi is coming under the microscope because of alleged misdeeds by staff in his office.

[Paladin2]

Just wait until the Feds start handing out monthly prebates from the “fair” tax.

[John123]

Authorities called it the largest theft ever uncovered in local government in the Washington area.

Color me surprised... why should the private businesses get all the white collar crooks?

[Brad from Tennessee]

Harriette Walters
Manager Adjustment
Office Of Tax And Reimbursement
Washington DC

$1,100 Democratic National Committee 2004

http://fundrace.huffingtonpost.com/neighbors.php?type=name&lname=+Walters&fname=harriette&older=yes&search=Search

[xtinct]

Hilarious... the donation has already been pulled from the Huffington post using your link...

[khnyny]

More links on various articles:

FBI arrests 5 in $20M D.C. tax scam
http://www.usatoday.com/news/nation/2007-11-08-dcscam_N.htm

D.C. Tax Scam Total Rises to $20 Million, Officials Say
Authorities Now Say Theft by Employees Totaled $20 Million
http://www.washingtonpost.com/wp-dyn/content/story/2007/11/08/ST2007110801265.html?nav=rss_email/components

Prosecutors charge D.C. tax office employees with fraud
http://www.bizjournals.com/washington/stories/2007/11/05/daily37.html?ana=from_rss

[VOA]

bump

[khnyny]

Try this:

http://www.newsmeat.com/fec/bystate_detail.php?city=WASHINGTON&st=DC&last=walters

[Brad from Tennessee]

Great site. It looks like Ms. Walters has been funneling money to the Democrats. When the names of her family and friends who cashed the checks come out it will be interesting.

[stylin19a]

yikes...Walters could be in bigger trouble...she stole 20 million and didn’t give any to Hillary ?

[khnyny]

So, Gandhi fired a “whistleblower”? I wonder what law firm Mr. Zirkle is talking about, that definitely needs to be explored. Gandhi needs to go, asap. I wonder if he was involved.

From your article:

[Still, allegations of corruption didn’t surprise Todd Zirkle, a former tax office employee whom Gandhi fired in 2001 after Zirkle accused his co-workers of giving preferential treatment to a politically connected law firm.

“It was always a fire drill over there. Every three or four weeks they’d have a crisis,” Zirkle recalled. “They always had people like Harriette [Walters] with their fingers in the pot because there were no controls.”]

[zerosix]

Would that more stories of those involved in "gub'mint" work who actually defraud the taxpayers each and evry day, would be in print.

So much of our valuable tax dollars go into black holes of "waste fraud and abuse."

[ECM]

...the total has somehow risen from $16 million to $20 million being stolen.

FTA:

Authorities say they have evidence of doctored refunds dating to 2004, but some law enforcement sources said yesterday that the total could grow and that the activity might have started as early as 2000.

[khnyny]

Great.

Here’s another article:

http://abcnews.go.com/TheLaw/FedCrimes/story?id=3835014&page=1

[The alleged co-conspirators include Richard Walters, Connie Alexander and Jayrece Turnbull. The front companies included a home service firm and a sham plumbing and heating repair business.]

And:

[Although only the five individuals were arrested and charged Wednesday in criminal complaints, court records detail the possible involvement of other D.C. government employees in the Office of Tax Revenue, as well as a former assistant manager at the Bank of America.

The FBI affidavit notes, “The conspirators were also aided in their scheme by ... an assistant bank manager, [who] was able to assist the conspirators in moving money among and between accounts.”]

[Mojohemi]

The nations capital is a trash heap! these lovely people (Sarcasm) should be given the medal of honor.

[xtinct]

Wow.. appears Harriette made her donations to the Democrats with stolen money... eeeks...

[traviskicks]

Libertarian ping! To be added or removed from my ping list freepmail me or post a message here.

[FreedomPoster]

Presented by the Federal Election Commission

Individual Contributions Arranged By Type, Giver, Then Recipient

Contributions to Political Committees

WALTERS, HARRIETTE M
WASHINGTON, DC 20015
OFFICE OF TAX AND RE/MANAGER ADJU

DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
	05/05/2004	500.00	24961692731
	09/13/2004	500.00	24991284411

WALTERS, HARRIETTE M
WASHINGTON, DC 20015
TAX REVENUE/ADJUSTMENT MANAGER

DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
	10/22/2004	500.00	24981654151
	01/24/2005	500.00	25970187470

WALTERS, HARRIETTE M
WASHINGTON, DC 20024
MANAGER-RPTA OFFICE OF TAX AND RE

DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
	09/07/1999	500.00	20035103415

WALTERS, HARRIETTE M
WASHINGTON, DC 20024
OFFICE OF TAX AND RE

DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
	09/13/2000	500.00	20036153630
	09/21/2000	500.00	20036153630

WALTERS, HARRIETTE M.
WASHINGTON, DC 20015
OFFICE OF TAX AND RE/MANAGER-RPTA

DNC SERVICES CORPORATION/DEMOCRATIC NATIONAL COMMITTEE
	03/29/2002	500.00	22990698013

Total Contributions:    4000.00

[Dave in Eugene of all places]

...made her donations to the Democrats with stolen money

Not unheard of these days at all.

[freekitty]

How did the Clintons miss this one?

[khnyny]

Here’s an update: as you probably know, the total has gone up to upwards of $31 million stolen, but hey, that’s just as of today.

The interesting thing I just saw on NBC 4 news (DC) was Jim Vance (anchor) saying that the DC tax office noted a statistical spike in the number of refund checks and that is what prompted the investigation. Weeeellll, that’s not what the Washington Post reported - the Post reported in great detail that it was an alert SunTrust Bank employee who became concerned when Walters’ niece Turnbull tried to move $200,000 from a phoney corporate account into another account. The SunTrust bank employee asked to see documentation that Jayrece Turnbull was an officer of the company. Turnbull had no such documentation and Turnbull reportedly became belligerent.

So, is the DC tax office trying to cover their tracks now and attempting to portray themselves as something other than the corrupt, incompetent imbeciles that they actually are? I say that would be a resounding YES.

[RDTF]

And I heard reported it was $400,000 check!

[star73]

This is quite an embarassment to the District of Columbia, especially being a 9 year employee who just could not take any more of the drama. I have said before and I am saying again that the district needs to clean house because believe it or not there are a lot of problems. One, they need to provide the employees with sensitivity training because they act as though they are doing the public a favor to serve them, they are full of drug addicts, drunks and thieves. A lot of them are extremely lazy and that office is falling apart. I can bet anything they are not the only ones in there stealing. The office needs a change the morale is low and almost everyone that works there is either related or got there through a friend. I pray someone does something soon or they are headed for destruction. Also, Dr. Ghandi needs to take some responsibility for this lack of leadership because if I am correct he was in that office when all of this began back in 2000 and it probably goes back further than this.