A Hollywood man is scheduled to go to trial in January on federal charges alleging he sought more than $65 million from the IRS by falsely claiming on tax returns that his nonexistent farming business was entitled to COVID-19-related tax credits.
Kevin J. Gregory, 57, was expected to plead guilty Thursday in Los Angeles federal court to a single count of making false claims to the IRS. The charge carries a possible sentence of up to five years behind bars, according to the U.S. Attorney’s Office.
Instead, no plea was taken by the judge and a Jan. 12 trial date was set.
Gregory was charged last year with 17 counts of making false claims. Federal prosecutors contend he attempted to claim funds under a federal “employee retention credit” offered to small businesses during the COVID-19 pandemic.
Between November 2020 and April 2022, Gregory allegedly submitted bogus claims to the IRS for nearly $65.4 million in refunds under the retention credit, citing a sham Beverly Hills-based farming and transportation company known as Elijah USA Farm Holdings, according to the U.S. Attorney’s Office.