A former developer in La Plata County has pleaded guilty to felony tax evasion and withholding taxes from the Colorado Department of Revenue, a misdemeanor.
Michael Thomas Nargi, 46, who now lives in Florida, faces 20 days in jail, four years on probation and must pay almost $80,000 in restitution after signing a plea agreement with the 6th District Attorney's Office.
The felony conviction will be deferred - or erased from Nargi's permanent criminal record - if he successfully completes terms of his probation.
A formal sentencing is set for 11 a.m. Oct. 16 in District Court.
According to an 11-page arrest affidavit, Nargi collected state income taxes from at least five employees but failed to report and pay those taxes to the state.
The criminal activity occurred between Feb. 28, 2005, and Feb. 29, 2008, while Nargi operated M-Tech Contracting and Alpine Creation in La Plata County.
Nargi built custom homes in La Plata County, including an "exclusive residential community" called The Sanctuary at North Valley, which has six homes eight miles north of Durango in the Animas Valley.
He was represented by Durango lawyer Richard Jaye.