California Tax Preparer, 71, Used Fake Businesses in Scheme That Cost Government $25 Million

A 71-year-old California tax preparer, Kerwin Aldric Jordan, has pleaded guilty to multiple federal charges after authorities said he filed fraudulent tax returns for clients and lied on COVID-19 relief loan applications.

Jordan admitted on May 5 to four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud, the Department of Justice said.

Jordan, who ran a tax preparation business called The Jordan Cooperation, falsely claimed he was both a tax attorney and a certified public accountant, according to prosecutors.

He prepared returns that fraudulently reduced his clients’ taxable income by fabricating businesses and reporting losses that did not exist.

“Jordan falsely reported that the taxpayer-clients had one or more businesses, even though he knew the businesses did not exist,” officials said. “He also reported losses for these non-existent businesses and used those losses to reduce taxable income.”

Jordan also operated another business, Jordan and Jordan A Financial Conquest.

In one case, he reduced a married couple’s $2 million income by claiming more than $1 million in fake business expenses. The fraudulent filing eliminated additional taxes owed and generated a refund of nearly $25,000. The couple paid Jordan about $28,000 to prepare the return.

Between 2018 and 2023, Jordan reportedly filed more than 1,370 federal returns claiming over $73 million in total business losses. Prosecutors say the scheme caused more than $25 million in losses to the U.S. Treasury.

Jordan also wrote a book, ‘LifeStyles of the Very Rich In Faith,’ and ran a church, Lifestyles of the Rich in Faith Church, a nonprofit organization of which he was the principal and, according to the DOJ, was a part of his extensive COVID-loan fraud, The Signal Santa Clarita Valley reported.

Authorities said Jordan also submitted false applications for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL), programs created in March 2020 to support businesses during the COVID-19 pandemic.

He obtained $188,667 in PPP funds and $276,600 in EIDL loans for multiple entities, including Euphrates Wealth Asset Management and Lifestyles of the Rich in Faith Church.

Prosecutors said Jordan falsely claimed these businesses had employees when they did not.

Jordan is scheduled to be sentenced on October 5 before U.S. District Judge Stephen V. Wilson in the Central District of California. He faces a maximum sentence of 32 years in federal prison.

The case was investigated by IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Ranee A. Katzenstein and Justice Department Tax Division attorney Matthew R. Hoffman, according to the Department of Justice.

The incident sparked mixed reactions on social media. “I’m rooting for this guy!” one Instagram user joked, while others criticized the scale of the fraud.

The case highlights ongoing federal efforts to investigate and prosecute financial fraud schemes that exploit tax systems and government relief programs.