A Robeson County woman has admitted to running a massive tax fraud scheme that weaponized pandemic-era relief programs to steal nearly $14 million from the federal government.
Nejlai Mitchell, 48, pleaded guilty in federal court to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, as well as assisting in the preparation of false tax returns. Mitchell owned and operated a tax return preparation business with locations in Lumberton and Hope Mills, North Carolina.
Court documents show that between April 2022 and May 2023, Mitchell and her staff fabricated tax returns for clients. These filings included materially false information specifically tailored to trigger large, fraudulent refunds tied to COVID-19 tax credits. In total, the Internal Revenue Service (IRS) paid out $13,890,697.00 before the operation was uncovered.
As part of her plea deal, Mitchell faces a maximum statutory term of eight years in federal prison and a fine of up to $500,000 when she is sentenced later this year. Additionally, the court will order her to pay a Forfeiture Money Judgment matching the exact amount stolen: $13,890,697.00.
Mitchell is not the only one facing prison time for the operation. Seven of her former employees have already entered guilty pleas for their individual roles in prepping the falsified client tax returns. The co-conspirators pleaded guilty in waves over the last year:
- 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.
The official announcement of the plea was made by Ellis Boyle, the U.S. Attorney for the Eastern District of North Carolina, after Chief U.S. District Judge Richard E. Myers II accepted Mitchell’s plea in court.
The criminal investigation into the business and its employees was conducted by IRS Criminal Investigation (IRS-CI). A definitive sentencing date for Mitchell has not yet been scheduled.
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