East St. Louis, Unwell. – A former resident of Edwardsville, Illinois, pled responsible on Friday, October 28, 2022, to creating a collection of false statements throughout his 2018 chapter case within the U.S. Chapter Courtroom for the Southern District of Illinois. In keeping with court docket paperwork, Kevin Kahrig, 49, a former constructing contractor within the space, hid gassets from his collectors by transferring these belongings to his girlfriend-turned-spouse, Catharine Kahrig, previous to submitting chapter. As a part of his plea, Kahrig admitted that he transferred $277,850 in money and checks to Catharine Kahrig in 2016, then closed all his financial institution accounts the subsequent yr. Kahrig hid these money transfers and lots of the closed accounts in his later filings with the chapter court docket. Subsequent, Kahrig took his title off a lakefront house he co- owned with Catharine Kahrig and hid this switch from the chapter court docket. Kahrig additionally offered his boat earlier than chapter. He gave the $395,000 he acquired from the boat to Catharine. Though Kahrig did disclose the sale of this boat to the chapter court docket, he lied in regards to the quantity he obtained from the sale and didn’t disclose that he had supplied these funds to Catharine. All advised, Kahrig hid lots of of 1000’s of {dollars} in belongings from his collectors.
“People who cover belongings and make false assertion on chapter pleadings not solely defraud their collectors, however they use the federal courts as part of their fraud,” mentioned United States Lawyer Rachelle Aud Crowe. “That’s an insupportable abuse of the chapter system which calls for transparency and forthrightness by these in search of to have their money owed discharged or restructured. Those that interact in such conduct can be held accountable by this workplace.”
“Kevin Kahrig selected lies and deception at each step to hide belongings and escape monetary obligations” mentioned FBI Springfield Discipline Workplace Particular Agent in Cost David Nanz. “The FBI takes our accountability to pursue allegations of chapter fraud very critically and can at all times work to maintain accountable those that attempt to bypass the system”.
“Concealing belongings in a chapter continuing is a criminal offense that threatens the integrity of the chapter course of and public confidence in that course of,” said Nancy J. Gargula, United States Trustee for Indiana and Central and Southern Illinois (Area 10). “We’re grateful to all of our legislation enforcement companions on this case and, particularly, to United States Lawyer Rachelle Aud Crowe for her dedication to pursuing those that lie about belongings in chapter.”
Kahrig’s offense carries a most sentence of 5 years imprisonment and a advantageous of as much as $250,000. Kahrig’s sentencing is ready for February 2, 2023, at 10:00am.
The investigation was performed by the Federal Bureau of Investigation, Springfield Discipline Workplace, in collaboration with the Southern District of Illinois Chapter Fraud Working Group coordinated by the U.S. Trustee for Area 10, after referral by the U.S. Trustee. The U.S. Trustee Program is the part of the Justice Division that protects the integrity of the chapter system by overseeing case administration and litigating to implement the chapter legal guidelines. Area 10 is headquartered in Indianapolis, with further workplaces in Peoria, Illinois, and South Bend, Indiana. The case is being prosecuted by Assistant United States Lawyer Peter T. Reed.