Tax fraud costs government $100 million
Poorly written Justice Department documents cost the federal government more than $100 million in what was supposed to have been the crowning moment of the biggest tax prosecution ever. Walter Anderson, the telecommunications entrepreneur who admitted hiding hundreds of millions of dollars from the IRS and District of Columbia tax collectors, was sentenced to nine years in prison and ordered to repay about $23 million to the city.
U.S. District Judge Paul Friedman stated he could not make Anderson repay the federal government $100 million to $175 million because the Justice Department's binding plea agreement with Anderson listed the wrong statute.
Channing Phillips, a spokesman for the U.S. attorney's office, said the government would bring civil charges against Anderson. "The IRS still has ample civil remedies available to recoup the money which are, in some respects, more efficient and quicker," Phillips said. "
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