EAST ST. LOUIS, Ill. – In a U.S. District courtroom on Wednesday, a judge sentenced a man formerly from Edwardsville to 14 months in prison, a $50,000 fine, and two years’ supervised release after he pled guilty to making false statements in a 2018 bankruptcy case.
Kevin Kahrig, 49, a former building contractor, concealed assets from his creditors by transferring those assets to his girlfriend-turned-spouse, Catharine Kahrig, prior to filing for bankruptcy.
“Individuals who hide assets and deliberately make false statements on bankruptcy pleadings defraud their creditors and disgrace the federal court system,” said U.S. Attorney Rachelle Aud Crowe. “It’s a serious offense to abuse the bankruptcy system, and anyone seeking to discredit this process will be held accountable.”
“To avoid paying his debt, Kevin Kahrig attempted to defraud his creditors by abusing the bankruptcy process,” said FBI Springfield Field Office Special Agent in Charge David Nanz. “Because this type of fraud can threaten the integrity of a program designed to help honest individuals with legitimate financial crises, the FBI takes our responsibility to pursue bankruptcy fraud very seriously. This sentence serves as a reminder of the consequences associated with financial crime.”
“Together with U.S. Attorney Crowe and our law enforcement partners, we will continue to pursue those who commit fraud and abuse in bankruptcy cases for their own personal gain,” said Nancy J. Gargula, U.S. Trustee for Indiana and Central and Southern Illinois (Region 10).
According to court documents, Kevin Kahrig admitted to transferring $277,850 in cash and checks to Catharine Kahrig in 2016 and then closed the bank accounts the next year. Kevin Kahrig hid those cash transfers and many of the closed accounts in his later filings with the bankruptcy court. He also took his name off a lakefront home he owned with Catharine and hid the transfer from the bankruptcy court.
In addition, he sold a boat before bankruptcy and gave the $395,000 he got from the sale to Catharine Kahrig. Kevin Kahrig disclosed the boat sale to the bankruptcy court but lied about the amount he received and did not disclose that he had given the proceeds to Catharine Kahrig.
Assistant U.S. Attorney Peter T. Reed prosecuted the case.
The investigation was conducted by the FBI’s Springfield Field Office in collaboration with the Southern District of Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee for Region 10, after referral by the U.S. Trustee. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois, and South Bend, Indiana.
originally published at HUMAN RIGHTS - USA DAILY NEWS 24