Michigan real estate developer indicted for tax and bank fraud
A federal grand jury in Grand Rapids returned and indictment today charging a Michigan businessman with tax evasion, filing false documents with the IRS, making false statements to IRS Criminal Investigation agents, and mortgage fraud, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Andrew B. Birge for the Western District of Michigan.
According to the indictment, Scott Allan Chappelle, of Okemos and East Lansing, was an attorney and former Certified Public Accountant who operated Terra Management Company LLC, Strathmore Development Company Michigan LLC, and Terra Holding LLC. According to the court, Chappelle allegedly failed to pay employment taxes to the IRS from 2010 to 2019, totaling at more than $830,000 of unpaid taxes. Chappelle allegedly avoided the payment of more than $830,000 in unpaid taxes by making false statements to the IRS about his and his companies' assets and income, failing to disclose his vacation house on Lake Michigan, and purchasing real property in nominee names instead of his own.
The indictment also charges that Chappelle made false statements and submitted fraudulent documents to a bank when refinancing his lake house mortgage.
If convicted, Chappelle faces a maximum term of five years in jail for tax evasion and making a false statement, three years for filing a false document with the IRS, and 30 years for bank fraud.