Former Real Estate Broker Pleads Guilty to Tax Evasion and Impersonating IRS Agent
Las Vegas, Nev. – A Las Vegas man who worked as a real estate broker in Nevada since the late 1970's, has pleaded guilty in federal court to felony tax evasion and impersonating an IRS Agent, announced Greg Brower, U.S. Attorney for the District of Nevada.
Michael J. Sabo, pleaded guilty on September 29, 2008, before U.S. District Judge Roger L. Hunt to False Impersonation of an Officer or Employee of the United States and Tax Evasion. According to the guilty plea memorandum, Sabo owed approximately $95,000 in individual federal income tax for the years 1994 through 1998. Sabo took several affirmative steps in order to evade payment of those taxes. In 2004 and 2005, Sabo pretended to be an IRS Agent and signed and filed with the Clark County Recorder's Office three fraudulent lien releases for tax liens the IRS had placed on real property he owned at 2323 Richard Drive in Henderson, Nevada. Because of Sabo's actions, three IRS tax liens, totaling approximately $97,000, were released from the property. In September 2005, Sabo sold the Richard Drive property, thereby avoiding the payment of his federal taxes. Sabo also transferred most of the proceeds of the sale of the Richard Drive property to a nominee.
"As this case demonstrates, anyone who takes affirmative steps to avoid paying their taxes, will be prosecuted," said U.S. Attorney Brower.
According to the Nevada Real Estate Division, Sabo was first issued a real estate broker's license in Nevada in 1982. On August 31, 2008, his license expired and was not renewed.
Sabo is scheduled to be sentenced on January 9, 2009, at 10:30 a.m. He faces up to three years in prison and a $250,000 fine on the impersonation charge and up to five years in prison and a $250,000 fine on the evasion charge.
The case was investigated by IRS Criminal Investigation and the Treasury Inspector General for Tax Administration, and prosecuted by Assistant United States Attorney Brian Pugh.
