Keyword Search:
text size: A | A | A
Walters Gets 17.5 Years for 20-year, $48M Tax Office Fraud
posted 06/30/09 4:17 pm
NewsChannel 8 - Walters Gets 17.5 Years for 20-year, $48M Tax Office Fraud
Stay on top of breaking news!
Sign up for NewsChannel 8 e-mail alerts.
Your Email:  
Follow NewsChannel 8 on Twitter
Follow NewsChannel 8 on Facebook
related stories:
WASHINGTON - The ringleader of the biggest embezzlement scheme in D.C. history was sentenced to 17.5 years behind bars Tuesday.

Harriette Walters, 52, pleaded guilty in September to wire fraud, money laundering and other charges and has been in jail since her arrest in 2007.  She and her co-conspirators stole an estimated $48.1 million from the D.C. Office of Tax and Revenue, where she worked as a manager, over more than two decades.

U.S. District Judge Emmet G. Sullivan handed down the sentence Tuesday. He ordered Walters to pay about $64 million in restitution, including the stolen funds and taxes owed.

Prosecutors told the judge the city might recover $10 million.

"We've seized houses. We've seized items of personal value, like the purses, the watches, the diamonds," said Assistant U.S. Attorney Timothy Lynch.

Before her sentence, Walters told the judge she has warned the city and accountants that unless big systemic changes are made, others could repeat her scheme and write themselves checks. 

She recalled how the city sent auditors to the D.C. jail last year from Price Waterhouse to talk with her about preventing future fraud. Walters claims she told them that without changing the accounting control, it's just a matter of time.

The plea agreement called for Walters to serve 15 to 18 years in prison. Walters also received three years probation.

Walters' attorney has said that his client considered herself a "benefactor" as she gave money to others.

Prosectors described Walters as "extraordinarily greedy."

"Just the tonnage of conspicuous consumption items found in her house," said Lynch. "Some of them had new tags on them -- she hadn't even gotten around to using them."

Ten other people have been sentenced to prison in the scheme.

 Email To Friend  Email This Article  AddThis Feed Button     Add to Mixx!

read more stories in Local News

Talkback - Story Comments
You need to be a registered member of
NewsChannel 8 to leave comments on news stories.
Not a member yet? Click Here to sign up.
Username or Email Address
Password
Please leave your comments below:
Messages that harass, abuse or threaten other members; have obscene or otherwise objectionable content; have spam, commercial or advertising content or inappropriate links may be removed and may result in the loss of your posting privileges. Please do not post any private information unless you want it to be available publicly. Never assume that you are completely anonymous and cannot be identified by your posts.
More News and Videos

TM & © WJLA/NewsChannel 8, a division of Allbritton Communications Company
Please read our Privacy Policy. By using this site, you accept our Terms of Service.
Children's Television | EEO Reports | NewsChannel 8 adheres to the ICRA RATING SYSTEM
 
{ts '2009-10-16 02:45:40'}