LOS ANGELES
A Hollywood man was sentenced to four years and nine months in federal prison for attempting to fraudulently obtain over $65 million in COVID-related tax credits by falsely claiming his fake farming business was eligible for pandemic relief, officials stated.
Kevin J. Gregory, 57, was also ordered to pay $2.77 million in restitution by U.S. District Judge Josephine L. Staton. He pleaded guilty in January 2024 to one count of making false claims to the IRS and has been in custody since May 2023, according to authorities.
From November 2020 to April 2022, officials stated that Gregory submitted bogus tax filings for a fictitious company, Elijah USA Farm Holdings, claiming it operated out of Beverly Hills. He falsely stated the business had employees and qualified for the Employee Retention Credit and Paid Sick Leave Credit — federal programs designed to help legitimate businesses impacted by the pandemic.
In one filing alone, Gregory requested a $23.8 million refund, claiming Elijah Farm employed 33 workers and paid $1.6 million in wages. In reality, the company had no employees and made no tax deposits.
The IRS paid out a portion of the false claims, and Gregory spent over $2.7 million on personal expenses.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Kristen A. Williams of the Major Frauds Section.