If There Was Ever a Reason for Dumping the IRS….

Gaius at Blue Crab Blvd:

The FBI has started to release some details of the items they seized during a raid on the home of Harriette Walters, the now-jailed former Washington DC tax office employee accused of stealing at least $20 million for that office. I reads like a catalog of conspicuous consumption. Despite the pricey items found in large quantities only a fraction of the stolen money can be accounted for. The Washington Post reports:

The investigators hauled out more than 100 pieces of jewelry, a mink coat and 90 purses — many of them such designer brands as Louis Vuitton, Chanel and Gucci, according to an FBI inventory that was released late yesterday.

Walters, who was arrested in the predawn raid Nov. 7, also had 68 pairs of shoes, designer luggage and other luxury items, the FBI said. Some of the goods were stored in the garage, near a 2006 Mercedes-Benz, where authorities said they found a pair of silver-plated iguana figurines, a silverware set, a Rolex watch and a silver bar cart.

The inventory, filed yesterday in U.S. District Court, provided new insights into the lifestyle of the woman who prosecutors say masterminded the biggest fraud ever perpetrated against the D.C. government: $20 million and counting, they say. It details items seized by nine agents who went through every room of the house near Rock Creek Park.

Walters, 51, co-worker Diane Gustus and four others are charged with taking part in a conspiracy to generate illegal property tax refund checks for themselves. In a separate court filing yesterday, authorities alleged that at least $12.7 million of the stolen money flowed directly into accounts controlled by Walters’s niece, Jayrece Turnbull, whom they described as Walters’s principal partner in the scam.

Authorities say that the have identified some real property, houses and cars, that account for some of the money. But there is an awful lot missing. So far they have been able to keep the suspects jailed arguing that they have both the means and a very large motive for fleeing. But there will be another hearing Monday for Turnbull.

I get the feeling this investigation is going to run far deeper, if they don’t screw it up. BCB has more details… go see. Memeorandum’s picked up on it too…