EAST ST. LOUIS, Ill. – An Edwardsville contractor has been sentenced for a false statement he made in a 2018 bankruptcy case.
Kevin Kahrig, 49, was sentenced to 14 months in prison, $50,000 in fines and two years of supervised release.
According to court documents, Kahrig admitted to transferring nearly $300,000 in cash and
checks to Catharine Kahrig, his girlfriend-turned-spouse, in 2016 and then closed the bank accounts the next year. Kevin hid those cash transfers and many of the closed accounts in filings with the bankruptcy court.
“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.”
Investigators say Kevin also sold a boat before bankruptcy and gave $395,000 he got from the sale to Catharine. While Kevin disclosed the boat sale to the bankruptcy court, he lied about the amount he received and did not disclose that he had given the proceeds to Catharine.
“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.”