D.C. Tax Fraud Scandal Keeps Growing
posted 5:12 pm Wed November 14, 2007 - Washington
The Post reviewed property tax refund records dating back seven years, and found almost half of all refunds issued in that period were suspicious. The alleged scam has nearly doubled from a total of $16 million when it was first announced, to $31.7, according to the Washington Post.
Two D.C. tax employees have been charged in the case, along with four co-conspirators. Additionally, Chief Financial Officer Natwar Gandhi has removed ten tax office workers, including four top managers. At a news conference Wednesday, Gandhi called it the "darkest day" in his thirty-plus years of professional service.
"I'm not a quitter. I'm not going to end my professional carrer with this blot on my reputation," he said.
The accused mastermind, 51-year-old Harriette Walters, has reportedly admitted her role in the scheme, according to court records.D.C. Mayor Adrian Fenty says he is standing by Gandhi, despite what Fenty called a breach of the public's trust. But he said Gandhi should be judged on his record of restoring the city's fiscal health.
Federal prosecutors have said two mid-level tax office employees, along with several accomplices, stole more than $20 million in public funds by fabricating property tax refund checks since at least 2001.
Gandhi also has asked the city's inspector general to conduct an independent investigation into the fraud case.The alleged scam began to unravel when a teller at the Bowie Sun Trust bank branch questioned a refund check.
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Information from: The Washington Post
Latest Comment on D.C. Tax Fraud Scandal Keeps Growing
MCA
6:48 am on 11/15/07
Every IG knows that disbursement of cash (checks, EFT, etc) is the easiest place to find evidence of fraud, waste, and abuse. It makes me wonder what the DC IG has been looking for. Mismanagement in DC gov't is legendary and rivals that of many third and fourth world countries. Does the DC IG lack independence or staff?
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