Comedian Carlos Mencia charged with 12 felony tax evasion in 1st case for new LA tax fraud unit
Carlos Mencía faces 11 years, if convicted
Comedian Carlos Mencía has been charged with 12 felony counts of state tax evasion after prosecutors say he failed to report $8.7 million in personal and corporate income over six years.
LOS ANGELES - Comedian Carlos Mencía has been charged with 12 felony counts of state tax evasion after prosecutors say he failed to report $8.7 million in personal and corporate income over six years.
What we know:
The Los Angeles County District Attorney’s Office said Mencía was arrested Thursday morning and is accused of failing to file California tax returns from 2019 through 2024.
What they're saying:
Los Angeles County District Attorney Nathan Hochman said the case is the first major prosecution brought by his office’s new Business Tax Fraud Unit, a specialized team created to investigate and prosecute businesses and owners accused of criminal tax violations.
"In total, the amount of corporate and personal income that he has failed to report over the six years from 2019 through 2024, as alleged in the charges, is $8.7 million," Hochman said.
Prosecutors said Mencía owed more than $300,000 in state taxes. Hochman said the California Franchise Tax Board sent Mencia 78 notices telling him he had failed to file returns.
"Yet he was 0 for 78," Hochman said.
The district attorney said the new unit is designed to target people and businesses accused of using trusts, limited liability companies and out-of-state entities to hide income or avoid paying taxes. The unit will work with the California Franchise Tax Board, the Employment Development Department and, when needed, the IRS.
Hochman said the office is not targeting every business that falls behind on taxes, but those accused of intentionally violating state tax laws.
"We’re going to go after that unfair advantage by bringing criminal prosecutions against people who violate our state tax laws," Hochman said.
In an interview with FOX 11, Hochman said the unit grew out of what he saw as a gap in tax enforcement after he took office. He said unpaid taxes do not disappear. Instead, he said, the cost shifts to people and businesses that follow the law.
"Those tax checks pay for police, they pay for fire, our roads and utilities," Hochman said. "The people who don’t pay are trying to get a free ride on hardworking Angelenos. We’re here to say their free ride is over, and the folks who do pay are not chumps."
What's next:
Mencía's arraignment is scheduled for Monday, June 22, in Van Nuys. If convicted as charged, prosecutors said he could face up to 11 years and four months in state prison.
The Source: This report is based on information provided by the Los Angeles County District Attorney's Office.