WMBF News reported on 10 November 2026 that, according to the U.S. Attorney's Office for the Eastern District of North Carolina, a federal judge sentenced Nejlai Mitchell, 48, to five years in federal prison for consp…
Source: wmbfnews.com · published
WMBF News reported on 10 November 2026 that, according to the U.S. Attorney's Office for the Eastern District of North Carolina, a federal judge sentenced Nejlai Mitchell, 48, to five years in federal prison for conspiring to prepare false tax returns claiming fraudulent refunds based on COVID-19 tax credits and for assisting in the preparation of further false returns, and ordered a forfeiture money judgment of $13,890,697. Mitchell owned tax preparation offices in Lumberton and Hope Mills. Prosecutors said that from April 2022 to May 2023 she and seven employees filed false returns seeking almost $24 million in refunds by exploiting the paid sick and family leave credit, a COVID-19 relief measure for businesses. Mitchell pleaded guilty to conspiracy and preparing and filing false tax returns; seven co-conspirators have pleaded guilty and five have been sentenced.
According to the U.S. Attorney's Office for the Eastern District of North Carolina, as reported by WMBF News, Mitchell owned tax preparation offices in Lumberton and Hope Mills. Prosecutors said that from April 2022 to May 2023 she and seven employees filed false returns seeking almost $24 million in refunds by exploiting the paid sick and family leave credit, a COVID-19 relief measure for businesses. She pleaded guilty to conspiracy and to preparing and filing false tax returns; a federal judge sentenced her to five years in federal prison and ordered a forfeiture money judgment of $13,890,697. Seven co-conspirators have pleaded guilty and five have been sentenced.
Tax credits aimed at businesses can be misused on returns for clients or entities that do not qualify. People who used a preparer and are unsure about credits claimed in their name should review their filings and, if needed, speak to the IRS or a reputable tax adviser about amending a return.
WMBF News, 10 November 2026, reporting the U.S. Attorney's Office for the Eastern District of North Carolina: https://www.wmbfnews.com/2026/11/10/8-women-sentenced-prison-multi-million-dollar-lumberton-covid-fraud/
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