Man Admitted To Filing False Tax Claims for a Nonexistent Farming Business
Kevin J. Gregory, 57, pleaded guilty to one count of making false claims to the IRS. He has been in federal custody since May 2023. The plea was entered on Friday, January 17 to a federal felony charge after admitting he sought more than $65 million in false tax refunds from the Internal Revenue Service (IRS) by claiming nonexistent COVID-19-related tax credits for a fictional farming business.
Gregory’s fraudulent scheme centered on the employee retention credit and the paid sick and family leave credit, both programs established by Congress to assist businesses during the COVID-19 pandemic. The credits allowed qualifying businesses to offset employment taxes if they met specific criteria, including experiencing operational disruptions or paying wages to employees on sick or family leave due to COVID-19.
According to his plea agreement, Gregory falsely claimed that his purported company, Elijah USA Farm Holdings, was entitled to these credits. Between November 2020 and April 2022, Gregory submitted fraudulent tax returns claiming approximately $65.4 million in refunds for the Beverly Hills-based company, which he asserted was engaged in farming and transportation operations.
In January 2022, Gregory submitted a tax return claiming Elijah Farm employed 33 people, paid nearly $1.6 million in quarterly wages, and deposited $18 million in federal taxes. He also falsely asserted the company was entitled to $6.5 million in COVID-19 tax credits. In reality, Elijah Farm had no employees, paid no wages, and made no tax deposits.
The IRS issued over $2.7 million of the refunds Gregory claimed, which he used for personal expenses. United States District Judge Josephine L. Staton has scheduled Gregory’s sentencing for May 16, 2025. Gregory faces a maximum statutory sentence of five years in federal prison.
The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant United States Attorney Valerie L. Makarewicz of the Major Frauds Section.
The Justice Department’s COVID-19 Fraud Enforcement Task Force, established in May 2021, continues to investigate and prosecute pandemic-related fraud. The task force collaborates with various government agencies to identify, prevent, and address fraudulent schemes.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it to the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at (866) 720-5721 or via the NCDF complaint form.
