Man Admits To $65M COVID-Fund Scheme With Fake Beverly Hills Farm: DOJ

LOS ANGELES, CA — A Hollywood man on Friday pled guilty to a federal charge he sought more than $65 million in COVID-19 tax credits for a Beverly Hills family business that didn't exist. He admitted that he used millions of that money for personal expenses, according to the U.S. Attorney's Office.

Kevin J. Gregory, 57, pleaded guilty in federal court to one count of making false claims to the IRS, according to the U.S. Attorney's Office.

Last year, Gregory was charged with 17 counts of making false claims connected to IRS filings he made between 2020 and 2022. Gregory sought nearly $65.4 million in tax refunds for a Beverly Hills-based farming and transportation company called Elijah USA Farm Holdings. But the business did not exist, prosecutors said.

The tax refunds were connected to pandemic-era "employee retention credit" programs, which allowed businesses whose operations were impacted by COVID-19 to receive government money equal to a certain percentage of wages that the business paid to its employees, prosecutors said.

Gregory is accused of using $2.7 million in falsely obtained tax refunds for personal expenses, prosecutors said.

Gregory is due back in court May 16 for sentencing, where he faces up to five years in federal prison.

City News Service contributed to this report.