North Carolina Tax Preparer Jailed Five Years in $24 Million Covid Fraud
Nejlai Mitchell, 48, sentenced to five years in federal prison for filing nearly $24M in fraudulent Covid tax refunds. Seven co-conspirators have also pleaded guilty.
Tax Office Owner Gets Five Years for $24 Million Covid Relief Fraud
A federal judge in Wilmington, North Carolina, sentenced Nejlai Mitchell, 48, to five years in federal prison after she conspired to file false tax returns claiming fraudulent refunds tied to Covid-19 relief credits, justice.gov reported. The court also ordered Mitchell to pay a forfeiture money judgment of $13,890,697.
Mitchell owned and operated tax return preparation offices in Lumberton and Hope Mills. Between April 2022 and May 2023, she and seven employees filed false returns seeking nearly $24 million in fraudulent refunds by exploiting paid sick and family leave credits — a Covid-19 relief measure Congress enacted to support struggling businesses. Mitchell's filings alone caused the IRS to issue approximately $13,890,697 in fraudulent refunds, more than half of the total generated by the conspiracy.
She pleaded guilty to conspiracy and to preparing and filing false tax returns.
"Mitchell and her co-conspirators deliberately stole COVID money intended to help struggling Eastern North Carolinians and used that to enrich themselves at the expense of hardworking taxpayers," said U.S. Attorney W. Ellis Boyle. "This prison sentence holds Mitchell accountable for her role in a conspiracy that stole taxpayer funds and corrupted the tax filing process. We are paying attention. We will find you. We will prosecute and convict you. You will go to cold steel federal prison. Cheaters. Never. Win."
Seven co-conspirators have already pleaded guilty for their respective roles in the scheme. The office manager of Mitchell's business, Whitnee Leach, pleaded guilty in May 2026 to participating in the same conspiracy and filing false tax returns. The remaining six defendants pleaded guilty to preparing and filing false returns for clients.
Five of those co-conspirators have already been sentenced. On 3 September 2026, the court sentenced Tiffany Moody to over two years in federal prison. On 8 July 2026, Shaneen Ray and Eyoubo McBurney each received 18-month sentences, while Sylvia Swindell was sentenced to 16 months. The following day, Katrena Stanback received a six-month sentence.
The sentence was handed down by Chief U.S. District Judge Richard E. Myers II. The IRS Criminal Investigation division is investigating the case, which is recorded under Case No. 7:26-CR-38-M in the U.S. District Court for the Eastern District of North Carolina.
Source: Google News MT — Crime (en)