- Eight North Carolina tax return preparers have pleaded guilty in a scheme involving nearly $25 million in pandemic-relief fraud.
- The IRS paid out approximately $13,890,697 in fraudulent tax refund claims as a result of this conspiracy.
- Mitchell, one of the preparers, faces a maximum of eight years in prison and a $500,000 fine when sentenced later this year.
- Mitchell will also be ordered to pay a Forfeiture Money Judgment of $13,890,697.
- From approximately April 2022 through May 2023, Mitchell and seven employees filed false tax returns seeking fraudulent refunds based on COVID-19 tax credits.
- Seven other co-conspirators previously pleaded guilty to preparing federal tax returns that included materially false items.
Eight North Carolina tax return preparers have pleaded guilty in a scheme that defrauded the IRS of nearly $25 million in pandemic relief funds. The group, which includes a business owner, filed false tax returns claiming fraudulent refunds based on COVID-19 tax credits from April 2022 to May 2023.1
The lead defendant, a Robeson County woman, faces a maximum of eight years in prison and a $500,000 fine upon sentencing. She will also be required to pay a Forfeiture Money Judgment of $13,890,697.234
The IRS disbursed approximately $13,890,697 in fraudulent claims as a result of this conspiracy. Seven other co-conspirators have also pleaded guilty, with their pleas occurring between May 2026 and December 2025. This case highlights the ongoing issues of fraud related to pandemic relief efforts, as authorities continue to crack down on fraudulent activities.6
The guilty pleas reflect a broader trend of fraudulent claims during the pandemic, raising concerns about the integrity of relief programs designed to assist those in need.
“Eight tax return preparers in North Carolina have pleaded guilty to a scheme involving nearly $25M in fraudulent pandemic-relief claims. The IRS disbursed approximately $13,890,697 based on false tax returns related to COVID-19 tax credits.”
