A federal judge spared a Seymour man from prison last week for filing a phony tax return after the man paid tens of thousands of dollars in back taxes and agreed to forfeit much more.
Michael S. Vasaturo, 57, had pleaded guilty in August to one count of filing a false tax return after the feds found he sold about $132,500 in scrap copper in 2007 but didn’t report the income on his tax return.
But even before he had pleaded guilty in the case, Vasaturo had paid the IRS $80,964.81, representing the taxes he would have paid on the scrap metal sales, plus interest and penalties.
Vasaturo also agreed to forfeit $144,888 in more cash that he admitted to having the money “structured” into his bank account to avoid transaction reporting requirements.
Though federal sentencing guidelines called for Vasaturo to be jailed for at least 10 months, federal prosecutors took the rare step of asking the judge for a “downward departure” from that range and a sentence of probation for Vasaturo.
Give Him A Break
In a sentencing memo in the case, Assistant U.S. Attorney Henry Kopel wrote that Vasaturo’s conduct was “serious,” especially given the fact that he had a degree in accounting and worked for six years as a CPA.
“The defendant’s non-reporting of over $100,000 cash income was not in any away a ‘close call’ or a matter of ‘uncertainty’ as to what the law requires,” Kopel wrote. “This would be true for the average taxpayer, and it is manifestly true for the defendant.”
Kopel also pointed out that Vasaturo’s tax evasion wasn’t born of “financial desperation.”
“On the contrary, the defendant has been for years a high income earner, and would still have had ample income to finances much more than the basic necessities if he had reported the cash income and timely paid his taxes due,” the prosecutor wrote.
But at the same time, Kopel said, Vasaturo quickly accepted responsibility — once he was caught.
“From early on, the defendant indicated through counsel that he sought to accept responsibility and make amends by means of a pre-indictment plea,” Kopel wrote.
Also, Vasaturo “sought to make complete tax restitution even before he entered his plea, and in fact paid all taxes, penalties, and accumulated interest a half year before the guilty plea hearing.”
Combined with the fact that Vasaturo had no prior record, Kopel said the facts suggest that “this case was a one-time crime of opportunity.”
Vasaturo’s lawyer, Andrew Bowman, agreed with the feds in a sentencing memo of his own.
In addition, Bowman submitted letters of support from Vasaturo’s family and friends.
“In sum and substance Michael Vasaturo has led an extraordinarily good and decent life and has been a tremendous asset to family, friends and his community,” Bowman wrote.
Sentence
U.S. District Court Alvin W. Thompson handed down a two-year probation sentence in the case Friday (Jan. 9).
The judge also ordered Vasaturo to pay a $16,000 fine and perform 100 hours of community service.
Bowman on Tuesday (Jan. 13) commended Judge Thompson’s handling of the case.
“The judge was very careful in determining what the appropriate sentence would be,” Bowman said. “You can see from the sentencing materials that I think everybody agreed he’s been a really great member of the community, and he made a mistake and he’s paid for it.”
“He was very responsible and he’s a very decent guy and I think everybody recognized that,” Bowman said. “That was certainly the reason for the decision in the case.”
