Carlos Mencia, the comedian known legally as Ned Arnel Holness, has been charged with tax evasion by Los Angeles prosecutors, who allege he failed to pay taxes from 2019 to 2024.
Charges and Financial Details
The Los Angeles District Attorney's Office brought 12 felony counts against Mencia, accusing him of not reporting $8.7 million in personal and business income. This unreported income results in approximately $300,000 owed in state taxes.
Los Angeles District Attorney Nathan Hochman announced that Mencia was arrested at his Encino home. The comedian faces a potential sentence of over ten years in prison, with civil penalties and interest set to nearly double the amount owed. Mencia's bail is set at $250,000, and his arraignment is scheduled for Monday.
Nedlos Entertainment Involved
Prosecutors indicated that $5.4 million of the unreported income originated from Nedlos Entertainment, a production and management company owned by Mencia.
The California Franchise Tax Board reportedly sent Mencia over 78 notices regarding his failure to file returns, all of which went unanswered, according to Hochman.
Federal Tax Status Unclear
It remains uncertain whether Mencia has fulfilled his federal tax obligations.
New Business Tax Fraud Unit
These charges against Mencia mark the first brought by the newly established business tax fraud unit. Hochman stated the unit was created due to a decrease in federal efforts to prosecute such cases.
"We used to have a very vibrant tax section in the U.S. Attorney's Office across the street," Hochman said. "We don't anymore. The old unit I came from, which is the tax division in the U.S. Department of Justice, doesn't exist on the criminal side anymore."
Hochman emphasized the significant scale of tax violations, stating, "The amount of tax violations is in the millions and millions and millions of dollars every year."
Source: https://www.hollywoodreporter.com/business/business-news/carlos-mencia-tax-evasion-1236625775/
