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.