FORMER EDWARDSVILLE RESIDENT PLEADS TO BANKRUPTCY FRAUD | USAO-SDIL

East St. Louis, Illinois – A former resident of Edwardsville, Illinois pleaded guilty on Friday October
On February 28, 2022, for making a series of false statements during his 2018 bankruptcy filing in the United States
Bankruptcy Court for the Southern District of Illinois.
According to court documents, Kevin Kahrig, 49, a former building contractor in the area, concealed
assets of his creditors by transferring those assets to his girlfriend-turned-wife, Catharine
Kahrig, before filing for bankruptcy. As part of his plea, Kahrig admitted to transferring
$277,850 in cash and checks to Catharine Kahrig in 2016, then closed all of her bank accounts the next day
year. Kahrig hid these cash transfers and many closed accounts in his subsequent filings with
the bankruptcy court. Then Kahrig removed his name from a lakeside home he owned with Catharine
Kahrig and hid this transfer from the bankruptcy court. Kahrig also sold his boat before
bankruptcy. He gave the $395,000 he received from the boat to Catharine. Although Kahrig revealed
the sale of this boat in bankruptcy court, he lied about the amount he received from the sale
and did not disclose that he provided these funds to Catharine. All in all, Kahrig hid
hundreds of thousands of dollars in assets from its creditors.

“People who hide assets and make false declarations on bankruptcy documents not only defraud
their creditors, but they are using the federal courts in their fraud,” the U.S. said.
Attorney Rachelle Aud Crowe. “It is an intolerable abuse of the bankruptcy system which requires
the transparency and frankness of those requesting the cancellation or restructuring of their debts.
Those who engage in such behavior will be held accountable by this office.

“Kevin Kahrig chose lies and deceit at every step to conceal assets and evade finances
obligations,” said David Nanz, special agent in charge of the FBI’s Springfield field office. “The FBI is taking
our responsibility to pursue allegations of bankruptcy fraud very seriously and we will always work to
hold accountable those who attempt to circumvent the system”.

“The concealment of assets in bankruptcy proceedings is a crime that threatens the integrity of the
bankruptcy process and public confidence in that process,” said Nancy J. Gargula, United States Trustee for Indiana and Central and Southern Illinois (Region 10). “We are grateful to all of our
law enforcement partners in this case and, in particular, to U.S. Attorney Rachelle Aud
Crowe for his commitment to prosecuting those who lie about bankrupt assets.

Kahrig’s offense carries a maximum penalty of five years in prison and a fine of up to
$250,000. Kahrig’s sentencing is set for February 2, 2023 at 10:00 a.m.

The investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office,
in conjunction with the Southern District of Illinois Bankruptcy Fraud Working Group coordinated
by the US Administrator for Region 10, upon referral by the US Administrator. The
The US Trustee Program is the component of the Department of Justice that protects the integrity of the
bankruptcy system by overseeing business administration and advocating to enforce bankruptcy laws.
Region 10 is headquartered in Indianapolis, with additional offices in Peoria, Illinois and South
Elbow, Indiana.
The case is being prosecuted by Assistant United States Attorney Peter T. Reed.