A Robeson County woman confessed to running a large tax fraud scam that used pandemic-era relief programs to steal nearly $14 million from the federal government.
Nejlai Mitchell, 48, pled guilty in federal court to conspiring to file false returns claiming fraudulent refunds based on COVID-19 tax credits and helping in the preparation of false tax returns. Mitchell owned and ran a tax preparation firm with sites in Lumberton and Hope Mills, North Carolina.
According to court records, Mitchell and her colleagues faked tax returns for clients between April 2022 and May 2023. These filings contained substantially incorrect information designed to result in significant, fraudulent refunds related to COVID-19 tax credits. The Internal Revenue Service (IRS) paid out $13,890,697.00 before the scheme was discovered.
Mitchell, as part of her plea deal, faces up to eight years in federal prison and a $500,000 fine when she is sentenced later this year. Additionally, the court will order her to pay a Forfeiture Money Judgment equal to the exact amount stolen: $13,890,697.00.
Mitchell isn’t the only one who will face prison time for the operation. Seven of her former colleagues have already pleaded guilty to their respective roles in preparing the fraudulent client tax returns. Over the past year, the co-conspirators have pleaded guilty in waves.
- Whitnee Leach pleaded guilty in May 2026.
- Tiffany Moody and Shaneen Ray pleaded guilty in December 2025.
- Eyoubo McBurney and Katrena Stanback pleaded guilty in September 2025.
- Jeannie Negron and Sylvia Swindell pleaded guilty in August 2025.
Ellis Boyle, the United States Attorney for the Eastern District of North Carolina, made the official announcement of Mitchell’s plea after Chief U.S. District Judge Richard E. Myers II accepted it in court.
IRS Criminal Investigation (IRS-CI) carried out the criminal investigation of the business and its personnel. A definitive sentencing date for Mitchell has yet to be set.
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