Good morning, D.C. The Post has an interview with former Office of Tax and Revenue employee Diane Gustus, who saw the charges against her dropped after Harriette Walters pleaded guilty earlier this week. At one time prosecutors had accused Gustus of being deeply involved in the embezzlement scheme, because she had prepared many of the documents that supported Walters being issued fraudulent refund checks. Now the U.S. Attorney’s office has decided they lack sufficient evidence to prove that Gustus was a knowing participant in the scam. Gustus has maintained she did not know what Walters was up to, and only signed documents because Walters, who was her boss, had told her to. “It’s starting to be behind me, thank God. It’s like I’m happy but in shock,” Gustus told the newspaper. In related news, members of the D.C. Council are pressing the U.S. Attorney to make sure his office shares all of its investigation with the District, so that they can make sure no one who might have been involved is still working for the city. For example, CFO Natwar Gandhi’s office said that they still don’t have information on which city employees may have taught Walters in the mid-1980s how to embezzle money from the Tax office. According to the Post, the U.S. Attorney has said the statute of limitations will block his office from prosecuting workers from that far back.

City Won’t Share Details of Shooting Investigation: It’s been one year since two off-duty D.C. police officers shot and killed 14-year-old DeOnté Rawlings. His family is suing the city, but the District has said it is sealing the findings of the investigation into the shooting. Acting Attorney General Peter Nickles said the city cannot release the investigative report to the Rawlings family’s attorney because it contains grand jury material that must remain secret under federal law.

Briefly Noted: Child and Family Services Agency given two weeks to avoid contempt charges … Two Beltway accidents, one fatal, cause traffic nightmare … Denzel Washington in town to kick off campaign for kids … Loudoun County sees nearly $200 million deficit for fiscal 2010.

This Day in DCist: One year ago we thought the story of the Rawlings shooting didn’t add up, and we live-blogged the U.S. Senate debate on the D.C. Voting Rights Act.

Photo by lorigoldberg