Las Vegas Lawyer Busted for $900K Tax Dodge

A Las Vegas lawyer has been caught with his hands in the cookie jar, dodging a whopping $900,000 in taxes. Charles C. LoBello, a Nevada-licensed attorney who practices business and personal injury law in Las Vegas, pleaded guilty in federal court to one count of tax evasion.

On June 22, 2010, a federal grand jury returned an indictment against LoBello, charging him with five counts of tax evasion and five counts of filing false personal income tax returns, for the tax years 2001 through 2005.

According to court documents, LoBello concealed over $900,000 in income from the United States, intentionally gave incomplete information to his bookkeeper and tax return preparer, and used personal checking accounts to hide large checks he received as legal fees. In the plea agreement, LoBello admitted that for the years 2001 through 2005 he owed an additional $260,625 in income taxes.

LoBello faces a maximum potential sentence of five years in prison and a fine of up to $250,000. He has agreed to pay restitution in the amount of $260,625 to the IRS, which represents his unpaid personal income tax liability for 2001 through 2005. He also agreed to pay all applicable interest and penalties on that tax liability.

U.S. District Court Judge James Mahan will preside over the sentencing hearing, scheduled for October 23, 2012. The case was investigated by special agents of IRS – Criminal Investigation, and prosecuted by Assistant Attorney General Kathryn Keneally and Tax Division Trial Attorneys Thomas W. Flynn, John P. Scully and Dennis R. Kihm.

The case serves as a stark reminder that no one is above the law, and that those who try to cheat the system will be held accountable. As the saying goes, ‘you can’t cheat an honest man,’ and it’s clear that LoBello’s attempts to evade taxes have caught up with him.

LoBello’s guilty plea marks a significant victory for the IRS and the Justice Department, and serves as a warning to others who may be tempted to engage in similar tax evasion schemes.