Kerwin Aldric Jordan, a 71-year-old tax preparer from Castaic, California, recently admitted to a series of fraudulent activities that not only cheated the U.S. Treasury out of millions but also took advantage of vital COVID-19 relief programs. This isn’t just a story about numbers and legal jargon; it’s a tale of deception, where trust was betrayed and a man preyed on a system designed to help those in need, all while masquerading as someone he wasn’t. Jordan, who once called Pebble Beach home, pleaded guilty to four counts of aiding in the preparation of false federal income tax returns and one count of wire fraud. His actions paint a vivid picture of a calculated scheme, where he masterminded ways to reduce his clients’ tax burdens through elaborate lies, ultimately impacting countless individuals and the nation’s financial stability.
Jordan presented himself as a legitimate tax professional, even claiming to be a tax attorney and a certified public accountant – credentials he conspicuously lacked. He operated two businesses, The Jordan Corporation and Jordan and Jordan A Financial Conquest, using them as fronts for his deceitful practices. His modus operandi was surprisingly straightforward yet terrifyingly effective: he would falsely report that his tax clients owned one or more businesses that, in reality, didn’t exist. He then fabricated substantial losses for these phantom businesses, meticulously offsetting his clients’ genuine income and drastically reducing their taxable amounts. The allure of significant refunds and reduced tax liabilities was a powerful motivator for clients, some of whom likely believed they were simply getting excellent tax advice, unaware of the intricate web of fraud being woven behind the scenes.
One particularly egregious example highlights the brazenness of Jordan’s scheme. He managed to reduce a married couple’s $2 million income by over $1 million through fabricated expenses linked to non-existent businesses. This audacious move not only eliminated the additional taxes the couple would have rightfully owed but also generated an undeserved tax refund of nearly $25,000. For this “service,” the couple paid Jordan almost $28,000, a fee that seems astronomical for legitimate tax preparation but perhaps seemed a small price to pay for the “savings” they received. Between 2018 and 2023, Jordan filed over 1,370 federal tax returns using similar deceptive tactics, reporting a staggering total of over $73 million in fictitious business losses. Prosecutors estimate that his widespread fraud resulted in an appalling loss of more than $25 million to the United States Treasury, money that could have been used for essential public services and infrastructure.
But Jordan’s illicit activities weren’t confined to manipulating tax returns. When the COVID-19 pandemic swept across the globe, bringing economic turmoil in its wake, Congress established crucial programs like the Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) to offer a lifeline to struggling businesses. Instead of seeing these programs as a means to genuinely support the economy, Jordan saw another opportunity for personal gain. He shamelessly exploited these lifelines, applying for PPP loans for his own companies and securing $188,667, money intended to keep small businesses afloat and retain employees during unprecedented times.
His deception extended to EIDL loans as well. He applied for these loans for Jordan and Jordan, Euphrates Wealth Asset Management (a company he owned), and Lifestyles of the Rich in Faith Church (a non-profit where he was the principal). In total, he received an additional $276,600 from these programs. The core of his fraud here was simple but effective: he falsely claimed that these entities had employees, when in reality, they had none. The entire premise of these loans was to help businesses pay their workforce and cover essential operating costs; by fabricating employees, Jordan siphoned off funds that were desperately needed by legitimate businesses facing genuine hardship and the threat of closure.
Now, as the legal process unfolds, Kerwin Aldric Jordan faces the stark reality of his actions. United States District Judge Stephen V. Wilson has scheduled his sentencing hearing for October 5, where Jordan could face a statutory maximum sentence of 32 years in federal prison. This severe penalty reflects the gravity of his crimes, which not only defrauded the government but also undermined the public’s trust in financial systems and exploited a national crisis for personal enrichment. The investigation, spearheaded by the IRS Criminal Investigation, and the prosecution by the U.S. Attorney’s Office and the Justice Department’s Criminal Division, serve as a potent reminder that those who seek to manipulate and defraud the system will ultimately be held accountable for their actions, no matter how elaborate their schemes.