Brother of D.C. Tax Fraud Ringleader Sent to Prison

Conspiracy led to $48M loss for District

Updated 1:39 PM EST, Tue, Nov 4, 2008

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The brother of the ringleader of a conspiracy that drained $48 million from the D.C. treasury is going to prison.

Richard Walters, 49, of Bowie, Md., was sentenced Tuesday in federal court in Greenbelt to four years and three months in prison, followed by three years of supervised release.

Walters, the brother of Harriette Walters, a former manager in the D.C. tax office, pleaded guilty to receipt of stolen property and conspiracy to commit money laundering.

Prosecutors said Richard Walters deposited fraudulent property tax refunds generated by his sister into an account for his plumbing business.

Harriette Walters, who also pleaded guilty, is expected to be sentenced to 15 to 18 years in prison.

Judge Alexander Williams Jr. also ordered Richard Walters forfeit $4,900,199 and, in order to satisfy such money judgment, to forfeit a home in the Virgin Islands, two homes in Bowie, a 2005 Bentley, four other vehicles, jewelry and monies held in several bank accounts.

"Richard Walters and Harriette Walters deposited 15 District of Columbia government checks totaling almost $5 million into a bank account in the name of his plumbing business over a period of six years," U.S. Attorney Rod J. Rosenstein said. "We will seek the forfeiture of all criminal proceeds and property purchased with stolen money because victims deserve restitution and criminals must not be permitted to profit from their crimes."