Former Connecticut resident pleads guilty to tax fraud offense

Date: April 30, 2024

Contact: [email protected]

Vanessa Roberts Avery, United States Attorney for the District of Connecticut, and Harry T. Chavis, Jr., Special Agent in Charge of IRS Criminal Investigation in New England, announced that Kevin Biebel, of Hardeeville, South Carolina, formerly of New Milford, Connecticut, pleaded guilty today in Hartford federal court to a tax offense.

According to court documents and statements made in court, Biebel operated Art Metal Industries, LLC ("AMI"), a metal fabrication business. In 2017, AMI had total gross receipts of more $1.5 million and a net profit of more than $550,000. That year, Biebel transferred more than $350,000 from AMI to his personal bank account for various personal expenditures. In 2018, the IRS sought to collect delinquent payroll taxes from Biebel for AMI and instructed Biebel to file delinquent Individual Income Tax Returns (Forms 1040) for the 2016 and 2017 tax years. In September 2018, Biebel filed the returns, which fraudulently reported that he had zero total income and zero total tax due for both years.

In 2018, AMI received more than $2.7 million in gross receipts and had a profit of more than $1.2 million. That year, Biebel transferred funds from an AMI bank account to his personal bank account and another bank account held in the name of Diego Trust LLC, a limited liability company for which Biebel was the sole listed member. Biebel used in excess of $750,000 in funds from those accounts to purchase a home in South Carolina and other assets.

Biebel also failed to file individual income tax returns for 2018, 2019, and 2020 tax years.

Between 2016 and 2020, Biebel failed to report more than $2.8 million in business income from AMI, resulting in a tax loss of approximately $900,000. In addition, he failed to withhold and pay over approximately $300,000 in employment taxes.

Biebel pleaded guilty to filing a false tax return, an offense that carries a maximum term of imprisonment of three years. He has agreed to pay restitution of $1,208,801.

Biebel is released on a $50,000 bond pending sentencing.

This investigation is being conducted by the Internal Revenue Service - Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.