Former New Milford Man Sentenced For Tax Fraud: Feds

NEW MILFORD, CT — A former New Milford man has been sentenced to 18 months in federal prison for tax fraud, according to officials.

Kevin Biebel, 72, who now lives in South Carolina, was also sentenced Monday to one year of supervised release following the prison term, U.S. Attorney for Connecticut Vanessa Roberts Avery announced.

Biebel operated Art Metal Industries, LLC, 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, according to officials.

“That year, Biebel transferred more than $350,000 from AMI to his personal bank account for various personal expenditures,” officials wrote in a news release. “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 more than $750,000 in funds from those accounts to purchase a home in South Carolina and other assets.”

Prosecutors said 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,” according to the news release. “In addition, he failed to withhold and pay over approximately $300,000 in employment taxes.”

Biebel was also ordered by U.S. District Judge Kari A. Dooley to pay $1,208,801 in restitution.

He pleaded guilty in April to filing a false tax return.

Biebel, who is released on a $50,000 bond, is required to report to prison on Jan. 7.