Kevin J. Gregory, a 57-year-old man from California, recently admitted to attempting to steal over $65 million from the IRS by falsely claiming tax refunds for a non-existent farming business. The fraudulent claims were made between November 2020 and April 2022, during the height of the COVID-19 pandemic, when many businesses were eligible for tax credits.
The Fraudulent Scheme
Gregory falsely claimed that his business, Elijah USA Farm Holdings, based in Beverly Hills, was entitled to large COVID-19-related tax credits. The company was supposedly involved in farming and transportation, and Gregory claimed it had 33 employees, paid nearly $1.6 million in wages, and deposited nearly $18 million in federal taxes. Based on these false statements, Gregory requested nearly $65.4 million in tax refunds from the IRS.
The tax credits were part of the government’s relief efforts to help businesses affected by the pandemic. However, Gregory’s business did not exist, and there were no employees or tax deposits to support his claims. Despite this, the IRS issued some refunds, and Gregory used over $2.7 million of those funds for personal expenses.
The False Claims
One of the most significant claims Gregory made was for $23,877,620 in January 2022. He submitted this amount as part of Elijah Farm’s quarterly federal tax return. According to the U.S. Attorney’s Office, Gregory knew that Elijah Farm had no workers, no tax deposits, and no legitimate business operations. His actions were entirely fraudulent, but they managed to deceive the IRS for a time.
The IRS initially issued part of the refund request, likely due to the urgency of processing pandemic-related claims quickly. However, as Gregory’s actions were investigated, it became clear that his business was entirely fictional. The authorities have now confirmed that he misused these refunds for personal gain.
Legal Consequences
Gregory has pleaded guilty to the charges of fraud. As a result, he now faces severe legal consequences. He will be sentenced on May 16, and he is facing up to five years in federal prison. This case highlights the risks and consequences of attempting to fraudulently exploit government relief programs.
The U.S. Attorney’s Office has emphasized that this case serves as a warning to anyone thinking of abusing pandemic relief programs. While the government made efforts to help businesses during the pandemic, the authorities are also vigilant and will hold individuals accountable for fraudulent activities.
Key Takeaways
- Kevin J. Gregory falsely claimed COVID-19 tax credits for a non-existent farming business.
- He requested over $65 million in refunds from the IRS, some of which were issued.
- Gregory used more than $2.7 million of the fraudulent funds for personal expenses.
- He faces up to five years in prison after pleading guilty to the charges.
Final Thoughts
This case is a stark reminder of the importance of honesty in business and tax filings. While the government provided substantial relief to businesses during the pandemic, those who exploited these systems for personal gain are facing serious legal repercussions. It also serves as a reminder that tax fraud is a serious crime with long-lasting consequences.
(Source : newsbreak.com)
