Local
Tax scam mastermind’s brother gets 4 years in prison for role
By: Bill Myers
Examiner Staff Writer
November 5, 2008
The younger brother of self-confessed D.C. tax scam mastermind Harriette Walters is off to prison, having pleaded guilty to helping his big sister siphon off millions in the city’s largest-ever public corruption scandal.
U.S. District Judge Alexander Williams Jr. sentenced Richard Walters to more than four years behind bars and three years of probation for his role in the $48 million, decades-long scam.
Under a deal reached in the summer, Richard Walters, 49, agreed to plead guilty and to testify against Harriette Walters, a former D.C. tax office bureaucrat who bilked the public out of millions through hundreds of phony property tax refunds. Shortly after Richard Walters’ plea, Harriette Walters pleaded guilty under a provisional deal with prosecutors.
She’s facing up to 18 years in prison if a federal judge accepts her plea deal.
Richard Walters admitted he used his plumbing company as one of the fronts in the scam. He ran nearly $5 million through his account, giving most of it back to his sister.
But he didn’t go broke on the deal: Richard Walters has admitted to using his cut to finance a sultanic lifestyle. Under his plea agreement, he’ll hand over a home in the U.S. Virgin Islands, two houses in Maryland, a 2005 Bentley and four other vehicles, jewelry, and cash in several bank accounts.
The money also helped pay for season tickets for Washington Wizards games, many of which were handed out to Harriette’s co-workers. So generous was she with the stolen money that she became known as “Mother Harriette.”
Last month, about 15 finance office employees were told to resign or be fired because their names appeared on checks written by Harriette Walters.
All but one of the original defendants in the tax scam have pleaded guilty. Former tax official Diane Gustus was exonerated by prosecutors and is fighting to get her job back.
Williams will sentence three other defendants in his Greenbelt courtroom next month.
Harriette Walters will be sentenced in March.
But the investigation into the fraud continues. Private lawyers from WilmerHale have been poring over records and interviewing key players — including Harriette Walters herself — and their report is imminent.
U.S. District Judge Alexander Williams Jr. sentenced Richard Walters to more than four years behind bars and three years of probation for his role in the $48 million, decades-long scam.
Under a deal reached in the summer, Richard Walters, 49, agreed to plead guilty and to testify against Harriette Walters, a former D.C. tax office bureaucrat who bilked the public out of millions through hundreds of phony property tax refunds. Shortly after Richard Walters’ plea, Harriette Walters pleaded guilty under a provisional deal with prosecutors.
She’s facing up to 18 years in prison if a federal judge accepts her plea deal.
Richard Walters admitted he used his plumbing company as one of the fronts in the scam. He ran nearly $5 million through his account, giving most of it back to his sister.
But he didn’t go broke on the deal: Richard Walters has admitted to using his cut to finance a sultanic lifestyle. Under his plea agreement, he’ll hand over a home in the U.S. Virgin Islands, two houses in Maryland, a 2005 Bentley and four other vehicles, jewelry, and cash in several bank accounts.
The money also helped pay for season tickets for Washington Wizards games, many of which were handed out to Harriette’s co-workers. So generous was she with the stolen money that she became known as “Mother Harriette.”
Last month, about 15 finance office employees were told to resign or be fired because their names appeared on checks written by Harriette Walters.
All but one of the original defendants in the tax scam have pleaded guilty. Former tax official Diane Gustus was exonerated by prosecutors and is fighting to get her job back.
Williams will sentence three other defendants in his Greenbelt courtroom next month.
Harriette Walters will be sentenced in March.
But the investigation into the fraud continues. Private lawyers from WilmerHale have been poring over records and interviewing key players — including Harriette Walters herself — and their report is imminent.
