Overview
- Los Angeles prosecutors arrested Carlos Mencia and on Thursday charged him with 12 felony counts for failing to file personal and corporate California tax returns for 2019–2024, with bail set at $250,000 and an arraignment scheduled for June 22.
- Prosecutors say Mencia failed to report roughly $8.7 million in income across those years, about $3.3 million in personal earnings and $5.4 million tied to his company NedLos Entertainment, and that the California Franchise Tax Board sent 78 notices that went unanswered.
- The DA’s complaint asserts Mencia owes more than $300,000 in state tax on the alleged unreported income and that a conviction on all counts could carry a prison term of about 11 years and four months plus repayment, interest and penalties.
- District Attorney Nathan Hochman said this is the first case brought by the Business Tax Fraud Unit, a unit created last month to pursue complex business and payroll tax crimes after a reduction in federal criminal tax enforcement.
- Next steps include Mencia’s arraignment where he has not yet entered a plea, possible further civil or federal scrutiny since the DA noted federal obligations were not addressed in the charges, and prosecutors may seek to recover unpaid tax, interest and penalties.