LANSING, Mich. (WLNS) — A 61-year-old real estate developer is looking at some potential prison time after pleading guilty to tax evasion.

According to a statement from the United States Attorney’s Office of the Western District of Michigan, Scott Chappelle ran an operation that kept the IRS from collecting his business and personal taxes for close to a decade.

Chappelle was an attorney and Certified Public Accountant (CPA) who was in charge of Terra Management Company, Strathmore Development Company Michigan LLC and Terra Holdings LLC.

All the businesses were involved in real estate development and property management in the East Lansing area.

Chappelle admitted that he did not pay the IRS employment taxes withheld from the wages of the companies’ employees.

When the IRS went to collect the unpaid taxes, Chappelle lied to the agency about his and his companies’ assets and income, concealed his vacation house on Lake Michigan and purchased real property in nominee names instead of his own.

Chappelle also told the IRS he couldn’t afford to pay his tax debts when he was using business bank accounts to pay for mortgage payments on two houses and a condo, college tuition for his children, personal credit card bills, life insurance premiums, multiple car payments, and expenses for the boats he owned.

The accountant and lawyer also lied when he said he had not purchased property since the IRS began collection activities, and he concealed the source of the funds used to pay for a mortgage on a condo in East Lansing.

During the investigation, Chappelle filed a false employment tax return for Terra Holdings LLC, in which he claimed that the company had no employees and paid no wages during the time period covered by the return.

In actuality, the company did have employees and paid wages during that period, which Chappelle knew because he approved submissions to the company’s payroll provider.

Chappelle further admitted to falsifying a loan application when he refinanced the mortgage on his Lake Michigan vacation home in Harbor Springs.

Chappelle is scheduled to be sentenced on Aug. 2, facing a maximum penalty of five years in prison for tax evasion. He also faces a period of supervised release, restitution and monetary penalties.