A Las Vegas man who worked as a real estate broker in Nevada since the late 1970s has pleaded guilty to felony tax evasion and impersonating an IRS agent.

Michael J. Sabo pleaded guilty on Sept. 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. He owed approximately $95,000 in federal income taxes for 1994 through 1998.

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 in Henderson, Nev., according to the Justice Department. Because of his actions, the three tax liens, totaling approximately $97,000, were released from the property. In September 2005, Sabo sold the property, thereby avoiding tax payments. He also transferred most of the proceeds of the sale to a nominee. Sabo's real estate broker license expired in August of this year and has not been renewed.

Sentencing is scheduled for Jan. 9, 2009. Sabo 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 the IRS Criminal Investigation and the Treasury Inspector General for Tax Administration, and prosecuted by Assistant U.S. Attorney Brian Pugh.

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