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NC tax preparers plead guilty in $25M
pandemic-relief fraud scheme

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Posted By: FlyRight, 6/25/2026 2:32:42 PM

North Carolina tax return preparation business owner has joined seven former colleagues in pleading guilty to a scheme that sought almost $25 million in false COVID-19 relief tax refunds. The Justice Department on Wednesday announced that the company’s owner, Nejlai Mitchell, filed fake tax returns based on a paid sick and family leave credit — which Congress passed to help struggling businesses during the COVID-19 pandemic — from April 2022 through May 2023. The IRS paid out approximately $13.9 million in false tax refund claims due to the conspiracy, which operated out of the North Carolina cities of Lumberton and Hope Mills, according to documents and statements presented in court.

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Reply 1 - Posted by: Mizz Fixxit 6/25/2026 3:07:52 PM (No. 2120805)
Here are photos of the perps. https://thencbeat.com/nejlai-mitchell-guilty-plea-covid-tax-fraud/
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Reply 2 - Posted by: 3XALADY 6/25/2026 4:02:11 PM (No. 2120847)
Well, butter my butt and call me a biscuit. Paint me green and call me a pickle. Paint me blue and call me Babe. It's them, Yogi.
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Reply 3 - Posted by: JimBob 6/25/2026 4:24:54 PM (No. 2120859)
Yep! Standard Description Number Two. Any time the government puts 'Free Cash' out for grabs, there is some Crook who will try to grab some of it.
2 people like this.

Reply 4 - Posted by: padiva 6/25/2026 5:01:47 PM (No. 2120876)
Thanks for the photos.
0 people like this.

Reply 5 - Posted by: vhs68 6/25/2026 5:22:40 PM (No. 2120884)
They don't look smart enough to fill out a tax return.
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NC tax preparers plead guilty in $25M
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5 replies
Posted by FlyRight 6/25/2026 2:32:42 PM Post Reply
North Carolina tax return preparation business owner has joined seven former colleagues in pleading guilty to a scheme that sought almost $25 million in false COVID-19 relief tax refunds. The Justice Department on Wednesday announced that the company’s owner, Nejlai Mitchell, filed fake tax returns based on a paid sick and family leave credit — which Congress passed to help struggling businesses during the COVID-19 pandemic — from April 2022 through May 2023. The IRS paid out approximately $13.9 million in false tax refund claims due to the conspiracy, which operated out of the North Carolina cities of Lumberton and Hope Mills, according to documents and statements presented in court.
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