Sonoma Resident Sentenced To Two Years In Prison For Filing False Tax Return

SAN FRANCISCO – Sandra Lynn Vitorelo, AKA Sandra Mathewson, was sentenced yesterday to two years in prison and ordered to pay $91,442 in restitution for failure to report misappropriated funds on tax return, announced U.S. Attorney Melinda Haag and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge Thomas McMahon.

According to court documents, Vitorelo had her own tax return preparation and accounting business called M-V Services. In 2000, Vitorelo became the bookkeeper for her cousin. Vitorelo managed her cousin’s assets including stocks, currency, and real property. In 2006, the daughter of Vitorelo’s cousin opened a clothing store in Novato, Calif. Vitorelo subsequently began managing the finances for that store.

Vitorelo made unauthorized transfers from the bank accounts of her cousin and cousin’s daughter to her own Bank of America accounts. Vitorelo admitted to misappropriating at least $248,583 which she kept for her own use.

Vitorelo admitted that the money she misappropriated from her victims was converted to her own personal use. Vitorelo further admitted that she underreported her income on her federal income tax returns beginning in 2006 and continuing through 2009 as a result of her intentional failure to report these funds as income.

Vitorelo pleaded guilty in open court yesterday.

On Oct. 3, 2013, Vitorelo, 59, of American Canyon, was indicted on four counts of filing false tax returns. The sentence was handed down by the Honorable Thelton E. Henderson, United States District Court Judge, following a guilty plea on one count in violation of 26 U.S.C. § 7206(1). Judge Henderson also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving her sentence on April 27, 2015.

Assistant US Attorney Cynthia Stier is prosecuting the case. The prosecution is the result of an investigation by the Internal Revenue Service, Criminal Investigation.

(Vitorelo indictment )