Let’s talk about Kerwin Aldric Jordan, a man who, until recently, lived a life in Castaic, California, and before that, in the picturesque Pebble Beach. At 71 years old, Jordan found himself in a federal courtroom, facing the music for a series of actions that ultimately led to his guilty plea on multiple charges. This isn’t just a story about numbers and legal jargon; it’s a peek into a life that took a turn down a crooked path, impacting a community and the U.S. Treasury in significant ways.
Kerwin Jordan wasn’t your average tax preparer. He was the president of a company called The Jordan Corporation and also ran another business under the ambitious name, Jordan and Jordan A Financial Conquest. He presented himself to his clients as a tax attorney and a certified public accountant – titles that carry a lot of weight and trust. The problem? He held neither of those qualifications. This, in itself, is a betrayal of trust, and it was just the beginning of a larger scheme. His clients, likely seeking professional guidance, were instead led down a path of deception, unknowingly participating in a system designed to defraud the government.
The core of Jordan’s fraudulent activities revolved around federal income tax returns. He developed a method that, on the surface, seemed to offer his clients substantial refunds. He would falsely report that his taxpayer-clients owned businesses that, in reality, simply didn’t exist. Then, he’d conjure up losses for these imaginary businesses, using them as a clever way to dramatically reduce his clients’ taxable income. Think about it: if you can claim a huge loss from a supposed business, your taxable income shrinks, and with it, your tax bill. In some cases, this even generated significant refunds for his clients.
Let’s look at a concrete example to really understand the impact of Jordan’s actions. He took on a married couple who had a substantial income of $2 million. Through his fraudulent methods, Jordan claimed over $1 million in fake expenses for non-existent businesses on their behalf. This maneuver effectively wiped out a significant portion of their taxable income, meaning they avoided paying additional taxes they rightfully owed. The result? A tax refund of almost $25,000 for the couple. For this “service,” the couple paid Jordan nearly $28,000. It’s a stark illustration of how enticing such a scheme could appear to a client looking for a financial edge, without necessarily understanding the illegal underpinnings. This particular incident shows not only the financial loss to the government but also the significant fees Jordan was able to command for his illicit work.
Zooming out, the scale of Jordan’s operation was truly immense. Between 2018 and 2023, he prepared and filed more than 1,370 federal tax returns for his clients. The total amount of falsely reported business losses on these returns exceeded a staggering $73 million. Prosecutors in the case have contended that the cumulative effect of these fraudulent tax returns resulted in a colossal loss of over $25 million to the United States Treasury. This isn’t just about a few misplaced numbers; it’s about a systematic and widespread effort to undermine the integrity of the tax system, ultimately shortchanging the American public of funds that could have been used for essential services.
But Jordan’s illicit activities weren’t limited to manipulating tax returns. When the COVID-19 pandemic swept across the globe in March 2020, Congress swiftly created programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) to help businesses stay afloat during unprecedented economic challenges. These were lifelines for many, but for Kerwin Jordan, they became another avenue for fraud. He lied on loan applications for these crucial programs, seeking funds for his own gain. He applied for PPP loans for his companies and was successful in obtaining a total of $188,667. He also pursued EIDL loans for his businesses, including Jordan and Jordan, Euphrates Wealth Asset Management (a company he owned), and even Lifestyles of the Rich in Faith Church, a non-profit where he served as the principal. From these EIDL applications, he secured an additional $276,600. The crucial lie he told to get these loans? He falsely claimed that his companies had employees when, in truth, there were none. These funds, intended to protect jobs and keep struggling businesses alive, were instead diverted for unauthorized purposes, undercutting the very spirit of these vital relief programs.
With his guilty pleas for four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud, Kerwin Aldric Jordan now faces a grim reality. United States District Judge Stephen V. Wilson has scheduled his sentencing hearing for October 5th. At that time, Jordan will face a statutory maximum sentence of 32 years in federal prison. This case, meticulously investigated by IRS Criminal Investigation, serves as a powerful reminder that such fraudulent activities have serious consequences. Assistant United States Attorney Ranee A. Katzenstein, Deputy Chief of the Criminal Division, and Matthew R. Hoffman of the Justice Department’s Criminal Division, Tax Section, are the dedicated individuals prosecuting this case, working to ensure justice is served for the significant financial damage inflicted upon the U.S. Treasury and the abuse of vital pandemic relief programs.