Carlos Mencia has been arrested and charged with 12 felony tax counts in Los Angeles after prosecutors accused him of failing to report millions of dollars in income.
The Los Angeles County District Attorney’s Office announced Thursday, June 18, that the comedian allegedly failed to report $8.7 million in personal and corporate income between tax years 2019 and 2024.
If convicted as charged, Mencia could face up to 11 years and four months in state prison.
Mencia Was Charged With 12 Felony Counts
Mencia, whose legal name is Ned Arnel Holness, was charged in case 26VWCF01161 with six felony counts of failure to file personal income tax returns with intent to evade tax and six felony counts of failure to file corporate income tax returns with intent to evade tax. The charges cover each tax year from 2019 through 2024.
Prosecutors allege Mencia failed to file taxes during that period for both his personal income and corporate income connected to Nedlos Entertainment, Inc., the company the district attorney’s office identified as his business.
Prosecutors Say He Failed to Report $8.7 Million
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The district attorney’s office alleged that the unreported income included about $3.3 million in personal income and about $5.4 million in corporate income.
Prosecutors also alleged that Mencia owes more than $300,000 in California state taxes, including about $267,594 in personal income taxes and about $35,117 in corporate income taxes.
The California Franchise Tax Board mailed 78 demand notices to Mencia’s residence during the six-year period, according to prosecutors. The notices allegedly told him that tax returns had not been received and reminded him of his obligation to file.
The Case Is the First From a New Tax Fraud Unit
The case is the first filed by the Los Angeles County District Attorney’s newly created Business Tax Fraud Unit. District Attorney Nathan J. Hochman said the office is targeting people who fail to file tax returns and pay what they owe.
Mencia was arrested Thursday and remained in custody after bail was set at $250,000. His arraignment was scheduled for June 22 in Department 100 of the Van Nuys Courthouse.
Mencia Is Best Known for Mind of Mencia
Mencia, 58, rose to national fame with the Comedy Central series Mind of Mencia, which aired from 2005 to 2008. AP reported that he was arrested at his Los Angeles home around 7 a.m. and had not entered a plea as of its report. Entertainment Weekly reported that Mencia’s representation declined to comment.
The case remains under investigation by the California Franchise Tax Board.