Hollywood Man Sought $65M In COVID Funds For Nonexistent Farm: DOJ

BEVERLY HILLS, CA — A Hollywood man is heading to trial on federal charges he sought more than $65 million from the IRS by representing that his Beverly Hills farming business — which doesn't actually exist — was entitled to COVID-19 tax credits. He used millions of that money for personal expenses, according to the U.S. Attorney's Office.

Kevin J. Gregory, 57, was expected to plead guilty Thursday to a single count of making false claims to the IRS. But no plea was taken by the judge and his trial date was set for Jan. 12, prosecutors said.

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.

If convicted as charged, Gregory faces up to five years in federal prison.

City News Service contributed to this report.