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IRS official and wife charged in widening web of tax scam
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Harriette Walters, alleged mastermind of the D.C. tax scam, is a relative of Patricia and Robert Steven, who were arrested Thursday and charged in the scandal.
WASHINGTON (Map, News) - An IRS manager and his estranged wife were charged with receiving $2.8 million as part of the growing D.C. property tax scheme in which tens of millions of dollars were embezzled from the District’s coffers.
The arrests broaden the scope of the federal investigation, revealing new avenues that authorities say the thieves used to cash and hide illegally gotten six-figure government checks.
Robert O. Steven, 54, and Patricia A. Steven, 72, appeared separately in federal court in Greenbelt Thursday afternoon.
They are accused of cashing at least 11 checks totaling $2.8 million. The checks were issued to sham companies with variations of the name “Bellarmine.”
The Examiner last month revealed that Bellarmine was a bogus company and that at least $2.4 million in fraudulent checks were routed to it dating back to 1999. The checks were for amounts up to $490,000.
The Stevens are relatives of Harriette Walters, the former D.C. tax and revenue office boss and alleged ringleader of the massive scam, according to court documents.
Robert Steven, of Edgewater, Md., is a 32-year Internal Revenue Service employee and division director at the national tax office in New Carrollton, where he earned $143,471 a year.
Federal court documents showed his IRS office was searched. But officials have not commented on whether they believe he used his position to further the scam.
In the last four years, he purchased four Jaguar cars totaling $257,866, authorities said. His most recent purchase was a 2007 convertible model priced at almost $97,000.
Federal officials quoted a cooperating witness as saying that Patricia Steven, of Harwood, Md., and Walters were classmates at Georgetown University. The women would often go on thousand-dollar shopping sprees at Neiman Marcus, according to court documents.
Last year, Walters and Patricia Steven purchased a New Jersey residence together. Steven then transferred her part of the home to her daughter Stephanie, according to court documents. Walters and Stephanie Steven then purchased another New Jersey home for $885,000.
The homes and automobiles were seized by federal authorities.
In early December, federal officers secretly placed a Global Positioning System device in Robert Steven’s car to track his movements. At her court appearance, Patricia Steven appeared nervously chatty, saying, “I’ll talk about anything.” Several times the judge had to politely call time out to get her to stop talking.
Robert Steven came in next, subdued and sluggish. “I don’t know what to do about work,” he said.
The pair are the ninth and 10th suspects arrested in connection with what authorities say is the largest government financial scam in the city’s history. They each face up to 10 years in prison.
smccabe@dcexaminer.com
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Examiner Reader said:
Phil Appelbaum is not the issue -- he is one of the honest managers in the DC real property office actually following the rules and regulations. It isn't an issue of black vs. white. Who are the other 10 people fired from the DC tax office since the case broke, and why haven't we been told who they are? The District should stop stonewalling! Who else in management are they trying to protect in auditing, revenue accounting, and the Treasury? Why hasn't the public been told the whole story?
82 agree | 52 disagree
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Examiner Reader said:
I'd like to know more about him and all of the thieves as a whole.
69 agree | 50 disagree
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Examiner Reader said:
Now fire Applebaum who is in on the corruption and Ghandi-all a bunch of crooks-looks like more of a cover-up. Any insite on the Wilkes Artis law firm and all the money they steal? Applebaum is buddy buddy with Stanley Fineman-travels with him, etc.-doles out lots of money. Stop arresting black people and look into the whites!!!
66 agree | 57 disagree
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Joe Jena said:
This incident shows that proper controls were not in place. Not for one year, not for 5 years, but for 17 years. The person in charge was incompetent and it's amazing he's now being allowed to hire others. And where did he hire him from? The corrupt state of Maryland of course.
61 agree | 61 disagree
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Examiner Reader said:
These people just gotta have the life of luxury without working for it. What you do in the dark will always come to light. I can't believe that old woman was that dum, and those that followed her, you should be locked up. You have starving children out here, did you give any of the money to them, you pothethic people. God will reveal ugly things when you are not doing the right thing. Smiling in peoples face every day, and doing dirt. What a shame.
70 agree | 68 disagree
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Examiner Reader said:
Burn them all, how stupid can you be. Every company has to do an audit sooner or later to see where their funds are going. Crime does not pay.
75 agree | 74 disagree
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Examiner Reader said:
Why can't DC just steal the tradition way like MD does - just keep increasing taxes until it hurts?
48 agree | 57 disagree
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Examiner Reader said:
How come Phil Applebaum is now running the DC Tax office? Have people investigated him and his ties to everyone?
39 agree | 47 disagree
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rentamob said:
and how much time will they get?
87 agree | 51 disagree
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Examiner Reader said:
can we see a picture of him, too?
89 agree | 80 disagree
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Examiner Reader said:
Why are they protecting Gandhi? The questions should be aimed at Tom Davis, the master, Anthony Williams, the law breaker, and Jack Evans, the protector....
100 agree | 87 disagree
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CONFIDENTIAL INFORMATION said:
It anyone thinks that this storying is surprising or outragious, just you wait. You ain't seen nothing yet!!
95 agree | 85 disagree
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CONFIDENTIAL INFORMANT said:
It's just a matter of time. Dr. Gandhi, whether involved or not, will be leaving us soon. But don't worry, he's almost 70 and perhaps he will start a consulting firm. He has really screwed up and he knows it. I am looking forward to them uncovering the real story!
69 agree | 92 disagree
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GAB said:
I want to know what the Criminal Investigation Division of the IRS is saying to Steven. Since they go in with the attitude "you're guilty of something", even if you're not, it would be instructive to see what happens when they come up against someone who really is guilty!
90 agree | 100 disagree
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Examiner Reader said:
Unfortunately this is only the tip of the iceberg! 11 checks totaling $2.8 million in fraudulent checks routed to Bellarmine dating back to 1999. Someone is also sleeping at the Bank of America. Oh yeah -- I ask the question: once we let the cat out of the bag, can we stuff it back in?
99 agree | 92 disagree
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Joe Jena said:
Gandhi is like the head of Enron. Why are they protecting him?
60 agree | 77 disagree
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Patent this game said:
What is happening is nothing but a extreme-version of the monoply game...think about it every time you pass go you collect 5k or more for that matter. As for Ghandi...ain't nothing wrong for asking for a 92k raise...it just the thought they were contemplating in given him one. You know that saying either you pay now or you pay later...with the word "severly" being added for good measure LOL!!!
75 agree | 75 disagree
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Examiner Reader said:
How Gandhi (the CFO) could even conceivably accept a $92,000 per year pay raise is beyond me. He has been there too long and outlived his usefulness, like Joe Gibbs. Throw the bum out!
81 agree | 69 disagree
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Angry Citizen said:
Hit the road, Nat. And don'tcha come back!
85 agree | 73 disagree
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Examiner Reader said:
Time to fire him and let the FBI investigate and chage him and his friends.
88 agree | 88 disagree
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