KEVIN BIEBEL, Tax Fraud, Connecticut 2024

KEVIN BIEBEL, a former New Milford resident, has been sentenced to 18 months in prison for tax fraud in Bridgeport, Connecticut. Biebel, 72, of Hardeeville, South Carolina, operated Art Metal Industries, LLC, a metal fabrication business with annual gross receipts exceeding $1.5 million.

According to court documents and statements made in court, Biebel transferred more than $350,000 from the business to his personal bank account for various personal expenditures in 2017. The IRS sought to collect delinquent payroll taxes from Biebel in 2018, and he was instructed 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. However, in 2018, the business received more than $2.7 million in gross receipts and had a profit of more than $1.2 million. Biebel transferred funds from the business 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 he was the sole listed member.

Biebel used more than $750,000 in funds from those accounts to purchase a home in South Carolina and other assets. Furthermore, he failed to file individual income tax returns for the 2018, 2019, and 2020 tax years, resulting in a tax loss of approximately $900,000. In addition, he failed to withhold and pay over approximately $300,000 in employment taxes.

As a result of his crimes, Judge Kari A. Dooley ordered Biebel to pay $1,208,801 in restitution. Biebel pleaded guilty to filing a false tax return on April 30, 2024, and is required to report to prison on January 7. Biebel is currently released on a $50,000 bond.

The investigation was conducted by the Internal Revenue Service – Criminal Investigation Division, and the case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser. This sentence serves as a reminder of the consequences of tax evasion and the importance of reporting accurate financial information to the government.

In total, Biebel’s crimes resulted in a loss of approximately $2.8 million in business income from Art Metal Industries, LLC. His sentence will serve as a warning to others who engage in similar activities.

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