Scam Could Total $31 Million

The Post's analysis shows the same pattern of suspicious refund checks that prosecutors have found -- but many more checks than have been publicly acknowledged.

The financial records examined by The Post do not say who prepared the refund paperwork, or who approved it.

The pattern of suspicious checks goes back to 2000 but surged into the millions of dollars in 2003, according to a Post review of more than 8,000 real estate refund checks issued since 2000. Using that same test investigators used to sniff out frauds, The Post counted 92 checks worth $31.7 million that appeared dubious. The vast majority were checks to companies already identified as false fronts allegedly used by Walters's group.

A total of 41 checks worth $13.6 million went to Legna Home Services and Chappa Home Services in that period, two companies that prosecutors say were shams and under the control of Jayrece Turnbull, Walters's niece. Turnbull is among those charged in the case.

The Post found $7.5 million in suspicious payments in 2004, $6.8 million in 2005, $7.3 million in 2006 and $4.9 million for the first seven months of 2007.

The amounts of the suspicious refunds were vastly larger than the average check. Non-suspicious refunds averaged $10,000 to $17,000. But the checks flagged by The Post averaged $200,000 to $300,000 from 2000 to 2003. By 2006 and 2007, the average had jumped to more than $400,000.

One name frequently used on the checks -- those cited by the government and others spotted by The Post -- was attorney David Fuss, who regularly handles property tax appeals. The checks naming Fuss that investigators have identified as suspicious all said "hold for pickup" rather than being mailed to an office. Investigators have said that Walters, not Fuss, personally picked up many of those checks.

In a court affidavit, an FBI agent said that a Sun Trust Bank official called Fuss last summer after Turnbull tried to cash part of a refund check; the bank wanted confirmation that Turnbull was in fact an agent of his firm. Fuss said that she was not a company official and that he had no relation to the check in question, even though his name was on it.

Two dozen of the checks identified by investigators or The Post's analysis listed Fuss's name and said "hold for pickup."

"It's not unusual for wrongdoers to hide behind the names of good companies and good individuals to further their schemes," Fuss said yesterday. He declined to speak further because the case is under investigation.

Many refunds examined by The Post were listed as being due to legitimate commercial companies, but then list a co-payee company name that can't be found in any business records. Other refunds are written to what appear to be variations of legitimate names -- including "Car Frtz" and "Paost Mass Ave."

One name, apparently made up, was Captain Co America. The check to Bilkemor was part of a string of 12 checks in four months around the 2004 holiday shopping season that totaled $4.2 million.