Photo by ssteege1.

A former employee of D.C.’s Office of Tax and Revenue pleaded guilty today to taking part in a scheme to file fraudulent tax returns that raked in $14.7 million in local and federal funds, the office of the U.S. Attorney for the District of Columbia announced today.

Kimberle Y. Davis, a 44-year-old Greenbelt resident, admitted that she filed more than 1,000 falsified tax returns over a span of two tax-filing seasons that collected more than $4 million. The entire scheme involved 3,700 phony returns.

Davis was employed by the Office of Tax and Revenue as a control technician specializing in deductions for residential property owners. In 2009 and 2010, she also worked part-time at 2FT Fast Facts Tax Service, a tax-preparing business in D.C. Davis and other employees filed 973 fraudulent federal returns which collected $3.7 million, and 282 phony local returns that netted another $300,000, the U.S. Attorney’s office said.

U.S. Attorney Ron Machen and D.C. Chief Financial Officer Natwar Gandhi announced Davis’ guilty plea. Davis’ admission comes a year after that of her fellow 2FT employee Ladonna Davis, who pleaded in October 2011 to taking part in the scheme that ultimately included 3,700 fraudulent tax returns. (Kimberle Davis and Ladonna Davis are not related.)

The fraud was first discovered by the Office of Tax and Revenue and investigated in conjunction with the Internal Revenue Service.

Kimberle Davis was charged on October 23. She pleaded guilty to conspiracy and first-degree theft charges in U.S. District Court. She faces a likely sentence of 37 to 46 months in prison and a fine of up to $75,000. She must also repay the funds earned by fake tax returns.