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The District government will recoup at least some money after the largest employee theft scheme in the city’s history, thanks to a new settlement reached today between the city and Bank of America.
In 2008, the District sued the bank over the role one of its employees had in helping former Office of Tax and Revenue office manager Harriette Walters make off with more than $48 million in bogus tax refunds. In its lawsuit, the District alleged that Bank of America failed to institute adequate controls from preventing Walters from depositing the fake refunds.
Walters is serving a 17-year sentence for her role in the fraud ring, which also resulted in charges against 10 other people.