Kerwin Aldric Jordan, a tax preparer from the Santa Clarita Valley, pleaded guilty on May 4 to charges related to preparing false federal income tax returns and fraudulently obtaining COVID-19 business relief loans. Jordan, 71, admitted in court to four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud.
The case is significant because it involves millions of dollars in losses to the U.S. Treasury through fraudulent tax filings and misuse of pandemic relief funds intended for struggling businesses. The actions outlined by prosecutors highlight ongoing concerns about abuse of government programs during the COVID-19 pandemic.
According to his plea agreement, Jordan was president of The Jordan Corporation and also ran a business called Jordan and Jordan A Financial Conquest. He falsely presented himself as both a tax attorney and certified public accountant. Prosecutors said he prepared federal tax returns that reported non-existent businesses for clients, creating fake losses that reduced their taxable income. In one instance, he reduced a married couple’s $2 million income by over $1 million with fabricated expenses from non-existent businesses, resulting in an almost $25,000 refund while charging them nearly $28,000 for his services.
From 2018 through 2023, Jordan filed more than 1,370 federal tax returns claiming total business losses exceeding $73 million. Authorities say these actions led to more than $25 million in losses for the United States Treasury. Additionally, he submitted fraudulent applications for Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), receiving hundreds of thousands of dollars after falsely stating his companies had employees when they did not.
United States District Judge Stephen V. Wilson scheduled sentencing for October 5; Jordan faces up to 32 years in federal prison if given the statutory maximum sentence.
The IRS Criminal Investigation handled this case while Assistant United States Attorney Ranee A. Katzenstein and Matthew R. Hoffman from the Justice Department’s Tax Section are prosecuting it. The U.S. Attorney's Office for the Central District of California serves over 19 million residents across seven counties and works with law enforcement partners on cases like this one,according to its official website.
