What the Feds Say the Tax Lady Spent at Neiman's: $1.4 million

You could start with the Dior Samurai Knot Frame Bag in black calf and goat leather, $3,600, in the store's Christmas book. Add in the updated Burberry trench coat, adorned with metal pyramid studs, for $10,995. Throw in a pair of Royal Asscher diamond drop earrings at $25,500.00. And keep going.

"There are three kinds of people who spend this sort of money" at Neiman Marcus, Moody says. "There's the devotee, who spends an amount each season on a particular designer and everyone knows them. These are not women who you see in the street all the time, and they all look really, really lovely. Then you have the professional people, you know, some of the media folks who come in and buy and buy and buy, and it's always between Saks and Neiman's. And then there's more the kind of person we're talking about here, someone who comes in and makes a big purchase and the lucky sales associate starts to work from there, and pretty soon they're back, and the [salespeople] are bringing them things from all over the store."

As it happens, if you spend this much stolen money -- allegedly! allegedly! -- at Neiman Marcus, the world becomes a slightly different place. People notice you. You're almost spending rock star money. You're almost spending wife-of-the-Kuwaiti-ambassador money. Then you realize you've got a long way to go. (Which may explain why you need still more money.)

Walters and Gustus are thus known. "They're social in D.C.," Moody says, who would see them at smaller parties, where you'd see "the government people. Oh, yes. I know them. I know who we're talking about. . . . These aren't stand-out women."

And how did they look? (Or how did they look for D.C. employees who made $81,000 and $55,000 a year, respectively?)

Lots of St. John, Moody recalls, and Jimmy Choo. There are some people you can walk up to and tell them how lovely they look, because it's true, because it all came together, not just the right clothes, but the right accessories, the hair and the whole look. Waters and Gustus didn't have that, she says. It was -- how to put it?

"Basically unfinished," Moody says. "That's typical in D.C."

Staff writer Paul Duggan contributed to this report.