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Why was Carlos Mencia arrested? Comedian faces 12 felony tax charges in alleged $8.7M tax fraud case

Comedian Carlos Mencia, best known for the Comedy Central series “Mind of Mencia,” has been charged with 12 felony tax counts, Los Angeles County District Attorney Nathan Hochman announced Thursday.

Comedian Carlos Mencia, best known for “Mind of Mencia,” was charged with 12 felony tax counts on Thursday. (AP Photo/Gus Ruelas)

What he is accused of

According to ABC News, prosecutors allege Mencia who is 58 has failed to file personal and corporate tax returns over a six-year period and did not report about $8.7 million in income which resulted in more than $300,000 in unpaid state taxes. Mencia is charged with six felony counts related to personal income tax returns and six felony counts related to corporate tax returns, with authorities alleging he failed to report both corporate and personal income between 2019 and 2024.

Hochman, speaking at a news conference, explained the scale of the unpaid taxes. “That translates into over $300,000 of state tax. And that, by the way, we’re not even dealing with whatever federal tax obligations he may have also not complied with,” he said, according to NBC Los Angeles. Of the unreported income, $5.4 million is tied to Mencia’s company, Nedlos Entertainment, as per reports.

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Hochman also revealed that the California Franchise Tax Board sent Mencia 78 notices regarding his tax obligations during that period, but he allegedly did not respond to any of them.

At the news conference, Hochman described Mencia as “one of California’s biggest tax scofflaws,” noting that the comedian appears on the California Franchise Tax Board’s list of the state’s 500 largest tax delinquents in both personal and corporate income tax categories, as per ABC News.

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What happens next in the case?

Mencia, whose legal name is Ned Arnel Mencia, was arrested at his home in Encino at around 7am local time on Thursday. According to ABC News, he remained in custody and bail was set at $250,000. Prosecutors said he is scheduled to appear in court for arraignment on Monday in Van Nuys.

According to NBC Los Angeles, this is the first case filed by the district attorney’s new Business Tax Fraud Unit, which was created last month to investigate white-collar crimes by Hochman’s office. The case does not currently involve federal authorities, but the DA’s office said it plans to work with the Internal Revenue Service (IRS) to determine whether additional tax-related charges should be filed.

Prosecutors said that if Mencia is convicted on all charges, he could face more than 10 years in state prison. He could also be required to pay back the unpaid taxes, along with interest and possible financial penalties.

According to Celebrity Net Worth, Carlos Mencia, a Honduran-born American comedian, actor, writer and producer has a net worth of $8 million.