New Milford Business Owner Pleads Guilty In Huge Tax Fraud Case: Feds

NEW MILFORD, CT — A former New Milford man pleaded guilty to federal tax fraud charges this week, according to prosecutors.

Kevin Biebel, 71, who now lives in South Carolina, ran Art Metal Industries, LLC, a metal fabrication business. The company generated more than $1.5 million in revenue and a net profit of more than $550,000 in 2017.

Biebel transferred more than $350,000 from the company to his personal bank account for various personal expenditures that year, according to prosecutors.

Biebel later filed tax returns that fraudulently reported that he had zero total income and zero total tax due for both years, prosecutors said.

In 2018, the company made more than $2.7 million and had a profit of more than $1.2 million. That year, Biebel transferred funds from a company bank account to his personal bank account and another bank account he controlled. Biebel used over $750,000 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, according to prosecutors.

In all, Biebel failed to report more than $2.8 million in business income from 2016 to 2020, resulting in a tax loss of about $900,000. He also failed to withhold and pay over about $300,000 in employment taxes, according to prosecutors.

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

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