D.C. Tax Scam Suspect Seeks To Negotiate A Guilty Plea

Prosecutors have said in court papers that the evidence against Walters is "overwhelming." If so, some veteran defense lawyers said it might be advisable for Walters to consider pleading guilty sooner rather than later.

An FBI affidavit shows that each of the 42 fraudulent tax refunds examined by investigators was approved by Walters, who was head of the assessment adjustment unit in the D.C. Office of Tax and Revenue. She oversaw the other D.C. government employee charged in the case, tax specialist Diane Gustus.

Several checks were held for pickup by Walters, and nearly all ended up being deposited in bank accounts of sham companies controlled by Walters's relatives, authorities have said. The FBI also has said that agents found paperwork in Walters's home and D.C. office that linked her to the scam, including checks for one of the sham companies.

Authorities have detailed bank and department store records showing how Walters's spending far outpaced what she could have earned legitimately. She had an annual salary of $81,000, and from 2001 to 2007, she deposited $8 million in her checking account and spent $1.4 million at Neiman Marcus.

"When a case against a defendant is very strong, it's a good idea for someone to plead early and take responsibility, and that will be looked upon favorably by the judge at sentencing," said Randall Eliason, a former chief overseeing public corruption prosecutions in the U.S. attorney's office. "It makes more sense to come in early if the case against you is really compelling."

Staff writer Yolanda Woodlee and staff researchers Meg Smith and Madonna Lebling contributed to this report.