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    PR Indictment

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    WDIV/ClickOnDetroit
    A Michigan real estate developer, Scott Allan Chappelle, was indicted for tax evasion, filing false documents with the IRS, making false statements to IRS agents, and mortgage fraud. According to the indictment, Chappelle failed to pay over $830,000 in employment taxes for his real estate companies. He is also accused of lying to IRS agents about purchasing properties and submitting fraudulent documents to a bank for a mortgage refinancing. If convicted, Chappelle faces up to 30 years for bank fraud and 5 years each for tax evasion and making false statements.

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    PR Indictment

    Uploaded by

    WDIV/ClickOnDetroit
    9K views2 pages
    A Michigan real estate developer, Scott Allan Chappelle, was indicted for tax evasion, filing false documents with the IRS, making false statements to IRS agents, and mortgage fraud. According to the indictment, Chappelle failed to pay over $830,000 in employment taxes for his real estate companies. He is also accused of lying to IRS agents about purchasing properties and submitting fraudulent documents to a bank for a mortgage refinancing. If convicted, Chappelle faces up to 30 years for bank fraud and 5 years each for tax evasion and making false statements.

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    PR Indictment

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    A Michigan real estate developer, Scott Allan Chappelle, was indicted for tax evasion, filing false documents with the IRS, making false statements to IRS agents, and mortgage fraud. According to the indictment, Chappelle failed to pay over $830,000 in employment taxes for his real estate companies. He is also accused of lying to IRS agents about purchasing properties and submitting fraudulent documents to a bank for a mortgage refinancing. If convicted, Chappelle faces up to 30 years for bank fraud and 5 years each for tax evasion and making false statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    9K views2 pages

    PR Indictment

    Uploaded by

    WDIV/ClickOnDetroit
    A Michigan real estate developer, Scott Allan Chappelle, was indicted for tax evasion, filing false documents with the IRS, making false statements to IRS agents, and mortgage fraud. According to the indictment, Chappelle failed to pay over $830,000 in employment taxes for his real estate companies. He is also accused of lying to IRS agents about purchasing properties and submitting fraudulent documents to a bank for a mortgage refinancing. If convicted, Chappelle faces up to 30 years for bank fraud and 5 years each for tax evasion and making false statements.

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    © All Rights Reserved
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    of 2

    United States Attorney’s Office

    Western District of Michigan


    ______________________________________________________________________________
    FOR IMMEDIATE RELEASE CONTACT: ANNE TOWNS
    THURSDAY, JUNE 04, 2020 PHONE: (616) 456-2404
    WEB: www.justice.gov/usao/miw/index.html FAX: (616) 456-2408

    MICHIGAN REAL ESTATE DEVELOPER INDICTED FOR TAX AND BANK FRAUD

    Lansing-Area Real Estate Developer Lied and Hid Income and Assets

    GRAND RAPIDS, MICHIGAN – A federal grand jury in Grand Rapids, Michigan


    returned an indictment today charging a Michigan businessman with tax evasion, filing false
    documents with the Internal Revenue Service (IRS), making false statements to IRS Criminal
    Investigation (IRS-CI) 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,
    Michigan, was an attorney and former Certified Public Accountant who operated Terra
    Management Company LLC, Strathmore Development Company Michigan LLC, and Terra
    Holding LLC, companies involved in real estate development and property management.
    Chappelle allegedly failed to pay over to the IRS employment taxes that were withheld from the
    wages of the companies’ employees. After the IRS attempted to collect the unpaid taxes, from
    2010 through 2019, Chappelle allegedly evaded 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.

    Chappelle is also charged with making false statements to IRS-CI agents during its criminal
    investigation. As alleged, Chappelle told investigators that he had not personally purchased any
    real estate during the last three years when in fact he had purchased both a condominium in East
    Lansing and a house in Powell, Ohio during that time. The indictment further alleges that
    Chappelle falsely told investigators that the condominium was for his son and paid for with student
    loan funds. Chappelle is also charged with filing a tax return for Terra Holdings on which he
    falsely claimed that the company had no employees and paid no wages.

    The indictment also charges that Chappelle made false statements and submitted fraudulent
    documents to a bank when refinancing his lake house mortgage. Chappelle allegedly falsely
    represented that he was not a party to a lawsuit or owed any federal debt when in fact, Chappelle
    was a party to at least two lawsuits and had outstanding tax liabilities. Chappelle is also alleged
    to have submitted fraudulent bank statements that showed a substantially higher balance in an
    account than the account actually had at that time.
    If convicted, Chappelle faces a maximum term of imprisonment of five years for tax
    evasion and making a false statement, three years for filing a false document with the IRS, and 30
    years for bank fraud (the mortgage fraud scheme). He also faces a period of supervised release,
    restitution, and monetary penalties.

    An indictment merely alleges that crimes have been committed. The defendant is presumed
    innocent until proven guilty beyond a reasonable doubt.

    Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Birge
    commended agents of IRS-CI, who investigated the case, and Trial Attorney Melissa S. Siskind of
    the Tax Division and Assistant U.S. Attorney Timothy P. VerHey, who are prosecuting the case.

    Additional information about the Tax Division and its enforcement efforts may be found
    on the division’s website.

    ###

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