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Los Angeles DA Charges Carlos Mencia in Debut Business Tax Fraud Case

Prosecutors say the 12‑count indictment marks a move toward tougher county enforcement of business‑tax offenses.

Overview

  • Last week authorities arrested Mencia at his Encino home and removed laptops, cell phones and records during a multi‑agent search, court filings and photos show.
  • On Monday he pleaded not guilty to 12 felony tax‑omission counts and a judge reduced his bail from $250,000 to $50,000.
  • Prosecutors allege Mencia failed to report about $8.7 million in income from 2019–2024—roughly $3.3 million in personal pay and $5.4 million through Nedlos Entertainment—leaving about $300,000 in unpaid state tax.
  • Defense attorneys filed emergency motions calling the raid an excessive show of force, asked for his release and the return of seized devices, and offered character letters and a cousin’s $50,000 surety bond.
  • The case is the new Business Tax Fraud Unit’s inaugural prosecution and could lead to civil tax recovery or federal review while signaling increased local focus on complex payroll and business tax cases.