A Los Angeles man has admitted to a federal felony charge after seeking over $65 million in fraudulent tax credits from the IRS. Kevin J. Gregory, 57, confessed to making false claims, alleging his nonexistent farming business was eligible for COVID-19-related tax credits.

Gregory pleaded guilty to one count of making false claims to the IRS and has been in federal custody since May 2023. The case centers around fraudulent applications for employee retention tax credits, which Congress authorized during the pandemic to help businesses affected by government restrictions.

According to court documents, between November 2020 and April 2022, Gregory submitted false claims for nearly $65.4 million in refunds for a fictional company named Elijah USA Farm Holdings. Despite claiming the company was based in Beverly Hills and employed 33 people, it never existed.

The IRS paid out more than $2.7 million of these claims, which Gregory used for personal expenses. In January 2022, he falsely claimed a refund of $23,877,620 on behalf of Elijah Farm as part of its quarterly federal tax return.

"Gregory claimed Elijah Farm employed 33 people," according to the plea agreement. "In fact, Gregory knew that Elijah Farm employed nobody."

United States District Judge Josephine L. Staton has scheduled sentencing for May 16, where Gregory faces up to five years in prison.

The IRS Criminal Investigation division conducted the investigation with Assistant United States Attorney Valerie L. Makarewicz prosecuting the case.

In response to increasing fraud during the pandemic, the Attorney General established the COVID-19 Fraud Enforcement Task Force on May 17, 2021. This task force coordinates efforts across various agencies to combat pandemic-related fraud and prosecute those responsible.

Individuals with information about attempted COVID-19 fraud can report it via the Department of Justice’s National Center for Disaster Fraud Hotline or through their online complaint form.