A former Alameda tax preparer was sentenced today to two years and eight months in state prison and ordered to pay restitution of more than $648,500 to her victims in connection with an elder abuse case, according to the Franchise Tax Board (FTB).
Sharon K. Hipol, 52, pleaded no contest March 30 to two counts of elder abuse and one count of state income tax fraud. According to court documents, Hipol, a former H&R Block employee, used her position as her victim’s tax preparer to embezzle more than $600,000 from her elderly victim during 2001-2002. The victim had inherited a large sum of money. She had met Hipol previously and trusted her, and asked Hipol to help prepare her tax returns. The embezzlement was discovered when the victim’s bank manager, who handled the victim’s finances, noticed a large check payable to Hipol. The bank manager knew the victim recently received a large sum of money, but also knew that the amount of state income tax due could not possibly be such a large amount. Hipol also failed to claim the embezzled income on her 2001 and 2002 state income tax returns. All income is taxable, even income from illegal sources.
Hipol was ordered to pay restitution to her victim of $564,987, and $83,533 to the Franchise Tax Board representing the unpaid tax, penalties, interest, and the cost of the investigation. Hipol is in the process of selling her home. The victim will receive $256,000 from the sale of the home. Hipol previously repaid $144,000 to the victim.
The victim’s name is not being released in order to protect her identity.
Alameda County Deputy District Attorney Robert L. Warren prosecuted the case. Alameda County Superior Court Judge Thomas R. Reardon handed down the sentence in Department 11 of the Rene C. Davidson Courthouse in Oakland. This was a joint investigation between Alameda County District Attorney’s Office and the FTB.