The man accused of being the main money launderer in the D.C. tax office scam was fired for cashing checks related to the scheme in February — nearly five months before an unrelated tip exposed what prosecutors have called a massive fraud.
Court documents filed Monday as part ofan initial court appearance of Walter Jones, 33, said Jones admitted to moving questionable checks through the Bank of America branch where he worked in a Feb. 2 statement to his employer. But it is not clear the bank ever informed prosecutors.
The scheme, in which prosecutors have said the city’s tax office was scammed for tens of millions of dollars, came to the attention of authorities in late June when a banker at another institution brought forward suspicions.
Jones, 33, wore a hooded black sweatshirt to court. He accepted U.S. District Judge William Connelly’s offer of a court-appointed lawyer.
According to court papers, the scheme’s alleged mastermind, former city tax official Harriette Walters, told three unidentified conspirators that Jones was the man to see to get the phony checks cashed.
According to court papers, Bank of America investigators confronted Jones in late January, 2007, after he deposited $91,000 in two of his own accounts. It was more than his annual salary.
Six months after Jones lost his job, another defendant, Jayrece Turnbull, walked into a SunTrust branch in Bowie and tried to cash a $410,000 check made out to one of the phony companies, according to court records and sources familiar with the widening investigation.
When a clerk balked at the check, Turnbull became abusive, one source said. That prompted SunTrust officials to begin making inquiries into the provenance of the check. When they reached out to Fuss, he told him he had never heard of the company on the check and urged them to call D.C.’s inspector general, sources told The Examiner.
Jones, of Essex, was released on his own recognizance after Monday’s hearing. He faces a maximum of 20 years in prison if convicted.
