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La Chapelle Jr. reaches plea deal for tax evasion

by
Federal Building and Courthouse in Milwaukee, Wisconsin.
Federal Building and Courthouse in Milwaukee, Wisconsin.

MILWAUKEE, WI (WHBL) - A Manitowoc man accused of embezzling over 300-thousand dollars from Nemschoff Chairs of Sheboygan has pled guilty to federal charges of tax evasion and wire fraud.

40 year old Paul La Chapelle Jr. was working as a maintenance technician at Nemschoff when he began stealing parts in 2009, and then ordering replacement parts for which he received a 50 percent kickback from the supplier.  The IRS said La Chappelle reported income of $44,000 from '08 to 2011 when he actually earned $415,000, thus, underpaying his taxes by nearly $70,000.

As part of the plea agreement - reached Tuesday in federal court - La Chappelle agreed to pay restitution of $520,000 to Nemschoff and its insurance company.  He could also be facing up to 25 years in prison.

Sentencing is set for July 18th.  In the meantime, La Chappelle is free on bail.

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