Tax Preparer Sentenced to Five Years for Orchestrating COVID-19 Relief Fraud Scheme
In Wilmington, NC, a tax preparer, Nejlai Mitchell, was sentenced to five years in federal prison for orchestrating a COVID-19 relief fraud scheme that sought nearly $24 million in fraudulent tax refunds by exploiting tax credits. Mitchell operated tax offices…
Wilmington, NC, November 9, 2026 —
A tax preparer has been sentenced to federal prison for orchestrating a significant fraud scheme related to COVID-19 relief funds. Nejlai Mitchell, based in Wilmington, NC, received a five-year sentence for her role in attempting to fraudulently obtain nearly $24 million in tax refunds.
The scheme involved exploiting tax credits designed to provide relief during the pandemic. Mitchell operated tax offices in two North Carolina locations: Lumberton and Hope Mills. Through these offices, she allegedly facilitated the submission of fraudulent claims to secure millions of dollars in refunds.
In addition to the prison sentence, Mitchell was ordered by the court to pay a substantial $13.9 million forfeiture judgment. This financial penalty is tied to the assets derived from or involved in the fraudulent activities.
The investigation has identified additional individuals involved in the scheme. To date, seven co-conspirators have pleaded guilty in connection with the fraud. The full scope and timeline of the operation, as well as the specific methods used to exploit the tax credits, are part of the ongoing legal proceedings. The U.S. Department of Justice has been prosecuting such cases nationwide to address the misuse of government relief programs.
Story summarized from the original created by WWAY News on www.wwaytv3.com, see more information here.
