A Camden County, Missouri couple are dealing with chapter fraud and structuring costs arising out of
a scheme to defraud the federal chapter court docket for the Southern District of Illinois. Kevin and
Catharine Kahrig are named in a four-count indictment that accuses the pair of
chapter fraud and structuring. The indictment additionally costs Kevin Kahrig, age 47, with making a
lengthy listing of false statements and omissions to the chapter court docket.
In keeping with the indictment, from 2016-2018, the Kahrigs launched a scheme to hide Kevin’s
belongings from his collectors and fraudulently switch at the least $550,000 in belongings to his spouse,
Catharine, age 34. Kevin and Catharine allegedly deposited over $160,000 in money and checks
belonging to Kevin into Catharine’s checking account. Catharine allegedly used the commingled funds in
her account to buy property and selectively pay Kevin’s bills, whereas Kevin emptied and
closed his personal financial institution accounts, cashing over $200,000 in checks slightly than depositing them with the
financial institution. The Kahrigs additionally allegedly structured over $100,000 in deposits in an try to evade financial institution
The indictment additional alleges that Kevin instructed his enterprise prospects to make out funds to
Catharine and different relations slightly than to himself or his enterprise. The couple is additionally
accused of promoting Kevin’s boat and utilizing the $395,000 verify to pay off Catharine’s
mortgage slightly than pay Kevin’s money owed.
Kevin Kahrig filed for chapter in Might 2018. The indictment costs him with making quite a few
false statements and omissions in his chapter filings and subsequent statements underneath
oath to hide the scheme to defraud.
“Abuse of the chapter system by concealing belongings for private achieve threatens the
integrity of the chapter system,” acknowledged Nancy J. Gargula, United States Trustee for Southern
Illinois, Central Illinois and Indiana (Area 10). “I’m gratified by the actions taken by United
States Legal professional Wei hoeft and our regulation enforcement companions to prosecute those that interact in
Every cost carries a most sentence of 5 years imprisonment and a effective of as much as
$250,000. The Kahrigs’ preliminary appearances and arraignments had been held earlier in the present day, and each
defendants entered a plea of not responsible. Trial is about for Might 19, 2021, earlier than United States
District Decide Stephen P. McGlynn.
An indictment is merely a formal cost towards a defendant. Below the regulation, the
defendants are presumed to be harmless of the fees till confirmed responsible past an affordable doubt
to the satisfaction of a jury.
The investigation was carried out by the FBI, 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 element 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 places of work in Peoria,
Illinois, and South Bend, Indiana. The case is being prosecuted by Assistant United
States Legal professional Peter T. Reed.