Eric Roper, The Examiner
2008-07-17 07:00:00.0
Current rank: Not ranked

WASHINGTON -

A key player in the record-setting tax scam that cheated D.C. out of up to $50 million pleaded guilty in federal court Wednesday, adding to a growing case against the accused plot mastermind.

Samuel Pope, 61, admitted to bilking the city out of $1.2 million with phony tax refund checks, and receiving another $400,000 from co-conspirators. He pleaded guilty to money laundering and mail fraud as part of a plea deal with prosecutors, and was taken into custody until his sentencing in September.

Prosecutors say the scam was orchestrated by Harriette Walters, a former employee of the D.C. Department of Finance and Revenue, who they say issued hundreds of false tax refund checks to friends and business owners and split the profits, according to court documents.

Investigators are slowly unraveling the plot, which began about 20 years ago. Pope is at least the seventh person to plead guilty in the case since the scam was made public in November.

Pope owned the Head To Toe Salon in Southwest, and received dozens of refund checks from Walters between 1991 and 2007, court documents state.

He deposited the checks into a variety of corporate bank accounts with the help of a banker who facilitated the deals, according to court documents.

 “This is probably the most serious criminal offense that has come before the court in years,” said a visibly incensed Judge Emmet Sullivan as he ordered Pope to be incarcerated without bail.

Pope, a tall man speaking in a whisper, objected to the ruling and asked that he be released until sentencing. Sullivan responded that white-collar criminals like Pope should not expect lax treatment, especially considering his two prior convictions on gun charges.

“You just assumed that you'd come plead guilty …  leave the courthouse through the revolving doors, get on the subway and life goes on,” Sullivan said, emphasizing the severity of the offense.

Each charge carries a 20-year maximum sentence, and Pope could face up to $750,000 in fines. Under the plea deal, he must also pay a restitution of more than $1.5 million to the D.C. government.

Pope's attorney, Barry Tapp, said after the hearing that he plans to file a motion petitioning the imprisonment, though Assistant U.S. Attorney Timothy Lynch said the ruling is standard for this type of case.