Carlos Mencia accused of hiding $8.7 million in income from taxes

Los Angeles prosecutors opened a high-profile tax case Thursday with 12 felony counts against comedian Carlos Mencia, accusing him of hiding about $8.7 million in income over six years and underpaying California by more than $300,000. The case is the first filed by the Los Angeles County District Attorney’s Office’s newly launched Business Tax Fraud Unit, a unit prosecutors said was built to pursue complex tax-related crimes that involve both individuals and companies.

Authorities said the alleged scheme ran from 2019 through 2024 and involved six felony counts tied to personal income tax returns and six felony counts tied to corporate returns. About $5.4 million of the unreported income was allegedly connected to Mencia’s company, prosecutors said, underscoring that the case is not limited to personal earnings but also centers on business revenue that investigators say should have been reported to the state.

District Attorney Nathan Hochman said Mencia, whose legal name is Ned Arnel Mencia, appeared on the California Franchise Tax Board’s list of the state’s 500 largest tax delinquents in both personal and corporate income tax categories. Hochman called Mencia “one of California’s biggest tax scofflaws” and said the state agency sent him 78 notices about his tax obligations during the period. Prosecutors said Mencia did not respond to any of them.

The charges place Mencia, 58, in legal jeopardy well beyond the immediate allegations of underreporting. If convicted on all counts, prosecutors said he could face more than 10 years in state prison, along with repayment of taxes owed, interest and possible civil penalties. Mencia was arrested on Thursday, remained in custody after the announcement and had bail set at $250,000. He was scheduled to be arraigned Monday in Van Nuys.

Best known for the Comedy Central series Mind of Mencia, he now faces a case prosecutors are presenting as part of a broader crackdown on tax evasion that reaches beyond any single celebrity name. By making the first Business Tax Fraud Unit case public now, the Los Angeles County District Attorney’s Office signaled that it intends to use the new unit to target alleged underreporting at the top end of the income scale, where the lost revenue can reach into the millions and drain money that should flow to state services and public coffers.