Former Banker Charged in DC Tax Fraud Scam
usdoj.gov | 1/5/09 | $17 million | suspect: Walter Jones | victim: DC Office of Tax and Revenue
Walter Jones, age 34, was sentenced to 78 months in prison, followed by three years of supervised release for conspiracy to commit money laundering in connection with a property tax refund scheme in which over $48 million were stolen from the District of Columbia Office of Tax and Revenue. The judge ordered that Walter Jones pay restitution of $17,941,817.30.
"This case dramatically illustrates the importance of banks as gatekeepers to our financial system," said U.S. Attorney Rod J. Rosenstein. "Honest bank employees identify and report suspicious transactions. Corrupt bank officials facilitate criminal activity and undermine the integrity of our banking system."
According to his plea agreement, Jones was employed by a bank, first as a banking center service manager, and then as an assistant manager. Jones met Harriette Walters in 1994 or 1995 when she was a bank customer. They became friends and Harriette Walters gave Jones monetary gifts of approximately $1,000 per gift, for assisting with her banking transactions.
At the request of Harriette Walters and other co-conspirators, between 2000 and 2006 Jones deposited 61 fraudulently obtained District of Columbia government checks totaling $17,941,817.30. Individual checks ranged in amounts from approximately $71,777 to $490,000. On several occasions, Harriette Walters called Jones to tell him that someone would be arriving at the bank with a District of Columbia government check and provided Jones with instructions as to how the proceeds of the checks should be distributed. Jones also distributed the proceeds of the checks according to the instructions of other co-conspirators, including Jayrece Turnbull, Ricardo Walters, Richard Walters, Connie Alexander and Samuel Pope. For example, in October 2006 Jones prepared 15 cashier's checks payable to other co-conspirators or businesses at the direction of Richard Walters, who had deposited a $460,000 District of Columbia government check at the bank.
Jones received cash gifts, including gifts of $25,000, $50,000 and $100,000, from co-conspirators in exchange for processing these fraudulent checks. In all, Jones received a total of at least $366,000 for his assistance in the scheme.