A former Forsyth County chiropractor faces up to three years in prison after pleading guilty to tax fraud Tuesday in federal district court.

Michael J. Falite, 41, also faces a fine of $315,258, according to a report from the U.S. Attorney's Office for the northern district of Georgia. His sentencing is set for Aug. 18.

Falite was charged in May with one count of filing a false income tax return.

According to the U.S. Attorney's report, Falite falsely stated 90 percent of his income from Falite Family Chiropractic in Alpharetta went to a nonexistent partner company.

He then used the money to pay personal expenses, including house and car payments.

U.S. Attorney David E. Nahmias said Falite also wrote checks “disguised as business expenses made payable to other sham entities.”

Information presented in court reportedly showed Falite filed a federal tax return in 2002 for his legitimate chiropractic practice using a fraudulent trust scheme.

The return attributed 90 percent of the clinic’s income to a fake company known as Abundance Investments, though no return was filed by or on behalf of Abundance and no tax was paid on the income attributed to that company on the clinic’s tax return.

“Bank account records revealed that Falite wrote checks from the chiropractic practice to Abundance Investments and other non-existent companies, which he then endorsed and deposited into bank accounts in names other than his own or Falite Family Chiropractic,” the U.S. Attorney's report said.