A federal judge sentenced a Hollywood man to nearly five years in prison May 22 after he pleaded guilty to claiming more than $65 million in COVID-19 tax credits for a fictional farming business, according to the U.S. Attorney’s Office in Los Angeles.
Kevin J. Gregory, 57, was sentenced by U.S. District Judge Josephine Staton, who also ordered him to pay nearly $2.8 million in restitution.
Gregory pleaded guilty on Jan. 17 to one count of making false claims to the Internal Revenue Service (IRS). He has remained in federal custody since May 2023, according to prosecutors.
In March 2020, Congress authorized an employee retention tax credit in response to the COVID-19 shutdown and its economic impacts on businesses. The tax credit could be used by businesses to reduce the employment tax owed to the IRS….