A co-defendant in D.C.’s multimillion-dollar tax scam is in plea discussions with federal authorities and will make a surprise appearance in court today, The Examiner has learned.

Diane Gustus is charged with helping her former co-worker Harriette Walters rip off the public through a series of phony tax refunds.

She was given a one-day immunity deal to talk to prosecutors about what she knew, but the meeting was postponed in lieu of today’s hearing, a source familiar with the investigation told The Examiner.

Prosecutors are expected to announce that they will postpone any grand jury indictments for 90 days and will waive a preliminary hearing, the source told The Examiner.

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The two sides are discussing a plea agreement.

Federal authorities have charged seven people in the scheme, which they say is the largest public corruption scandal in the District’s history.

They have raided numerous homes and businesses in D.C., Maryland and the Caribbean in the hope of tracking down the money.

The raids recovered luxury goods, from Faberge eggs to Bentley automobiles, in most of the defendants’ homes.

Gustus has been an exception, and court records from a raid of her home revealed a fairly Spartan existence.

Just months from retiring from the city, Gustus was also working a part-time job at Sears. Her lawyer, A. Scott Bolden, has said publicly that the evidence against his client shows, at worse, that she was a dupe of Walters’ and not a co-conspirator.

Bolden couldn’t be reached for comment late Wednesday.

Authorities have said in court papers that Walters was the mastermind of the scheme.

Got a tip on the tax scandal? Call Bill Myers at 202-459-4956 or e-mail bmyers@dcexaminer.com.