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Accused mastermind's nephew first indicted in tax fraud case
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Harriette Walters is the alleged ringleader of the D.C. tax office scandal.
WASHINGTON (Map, News) - A nephew of the alleged mastermind of the D.C. tax office scandal was indicted on Monday, the first person to be formally charged by a grand jury in the largest government theft in the city’s history.
Ricardo Walters, 32, of Fort Washington, was indicted by a federal grand jury in Greenbelt, Md., on charges that he was part of the scheme to bilk tens of millions of dollars from the District of Columbia.
Authorities said Walters set up a sham corporate bank account under the name of Provident Home Services and fraudulently deposited a D.C. government check worth $375,815 in September 2006. At least six bogus property tax refunds were deposited into an account controlled by Walters, according to charging documents.
Walters faces a maximum sentence of 10 years in prison if convicted. His arraignment has not been scheduled.
Ten people have been arrested in the tax office scheme since Nov. 7, including the alleged ringleader, Harriette Walters, the former manager of the D.C. Office of Tax and Revenue.
Authorities are required to charge suspects formally within 30 days of their arrest unless speedy trial rights are waived.
Prosecutors asked for an additional 90 days to consider the case against those charged in the tax office case because they said the investigation requires the review of governmental and financial records that date to at least 1990. Ricardo Walters was the only defendant to demand his right to a speedy trial.
Others charged in the scheme include a bank worker, an Internal Revenue Service supervisor, a second tax office worker and several members of Walters’ family.
Prosecutors have acknowledged publicly that the investigation has recovered only about $8 million of the at least $20 million embezzled from the city’s treasury. Authorities are concerned that some of the missing money was deposited in overseas bank accounts, making it difficult to trace.
The federal government has seized at least three international bank accounts, including from the U.S. Virgin Islands, where Harriette Walters was born.
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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