The Coronavirus was beneficial for so many people, including folks that got over on the system by getting millions of dollars in scams
The owners of North Carolina tax return preparation businesses pleaded guilty in June 2026 to filing false tax return credits in North Carolina. The suspects are Nejlai Mitchell, Whitnee Leach, Tiffany Moody, Shaneen Ray, Eyoubo McBurney, Katrena Stanback, Jeannie Negron and Sylvia Swindell. They all conspired to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits.
According to court documents and statements made in court, Nejlai owned and operated a tax return preparation business out of Lumberton, North Carolina, and Hope Mills, North Carolina.
From approximately April 2022 through May 2023, Mitchell and the other suspects filed false tax returns seeking fraudulent refunds based on the paid sick and family leave credit, which is a credit passed by Congress to aid struggling businesses during the COVID-19 global pandemic.
As a result of the conspiracy, the IRS paid out approximately $13,890,697 in fraudulent tax refund claims.
The suspects pled guilty to the crimes. Mitchell is scheduled to be sentenced in September. Leach is scheduled to be sentenced in August. Mitchell and Leach face a maximum penalty of five years for conspiracy and three years for preparing and filing false tax returns.
The remaining defendants each face a maximum penalty of three years in prison for preparing and filing false tax returns for clients. Their sentencing hearings are set for July 2026. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
