Former CEO of Wisconsin-based 5R Processors sentenced to prison in fraud case
MADISON, Wis. (CBS 58) -- A Merrill resident who formerly served as CEO / CFO and minority owner of 5R Processors has been sentenced to 33 months in federal prison, with three years of supervised release, for failing to pay $858,101 in employment taxes from 2014 through 2016.
According to a Friday, Feb. 24 press release from the Wisconsin Department of Natural Resources (DNR), Kevin Shibilski was also ordered to pay $100,000 in restitution to DNR and $100,000 to Paint Oak, LLC in Tennessee.
The DNR initially investigated 5R's activities and found evidence of illegal storage and transport of hazardous wastes.
The investigation was further developed by criminal investigation teams from the U.S. Environmental Protection Agency and the Internal Revenue Service, and the case was brought to federal court by the U.S. Attorney for the Western District of Wisconsin, Timothy M. O'Shea.
Co-defendants James Moss and Bonnie Dennee also received prison sentences for their roles in 5R's illegal activities.
DNR will use restitution funds paid by Shibilski and former company president Moss to hire contractors to remove waste and restore the properties that housed 5R's operations in Ladysmith, Glen Flora, Catawba and West Bend. An additional $2.5 million for the cleanups was appropriated by the Wisconsin legislature in 2021.
The combination of restitution and state-appropriated funds aims to help ensure that the properties affected by 5R's illegal activities can be restored to productive use.