Lawyer Pleads Guilty to Tax Evasion
Las Vegas, Nev. – A local lawyer pleaded guilty today to felony tax evasion for willfully failing to file federal income tax returns or pay federal income taxes for a five-year period, announced Greg Brower, United States Attorney for the District of Nevada.
Mark A. Lobello, a licensed Nevada attorney who practices in Las Vegas, pleaded guilty to one count of Tax Evasion. He was indicted by the Federal Grand Jury in November 2006.
According to the Plea Memorandum, Lobello has a degree in business administration from UNLV, and earned a law degree and became a member of the Nevada State Bar in 1990. Between 1994 and 2006, Lobello had his own law practice in Las Vegas, and handled business disputes, personal injury lawsuits, and divorce matters. Between the years 1997 through 2001, Lobello earned over $600,000 in income, but willfully failed to file federal income tax returns or pay any federal income taxes for the those years, even though he owed the IRS over $140,000. Lobello also attempted to conceal his income from the IRS by dealing in cash; mixing business funds with personal funds; using multiple taxpayer identification numbers; holding assets in the names of nominees; filing frivolous motions to quash IRS requests for his records; and demanding that clients withdraw IRS paperwork indicating he had earned taxable income.
Lobello is scheduled to be sentenced by U.S. District Judge James C. Mahan on November 19, 2008, at 10:00 a.m. The final sentence will be decided by the Court; however, the Plea Memorandum indicates that the defendant and the Government have agreed that a 15-month term of imprisonment followed by three years of supervised release is an appropriate sentence in the case. The maximum period of imprisonment that can be imposed under federal statutes is five years in prison and a fine of $250,000. The defendant has also agreed to pay restitution in the amount of $141,667 to the IRS, which represents his unpaid personal income tax liability for 1997 through 2001.
The case is being investigated by agents with IRS Criminal Investigation and prosecuted by Thomas W. Flynn and John P. Scully, Trial Attorneys with the Department of Justice Tax Division.