Lumberton: Tax preparer sentenced to five years in COVID fraud

In Lumberton, Nejlai Mitchell, who owned and operated tax preparation offices there and in Hope Mills, was sentenced to five years in federal prison. IRS Criminal Investigation posted that account on Monday, Nov. 9, 2026. U.S. Attorney W. Ellis Boyle made the announcement.

Chief U.S. District Judge Richard E. Myers II imposed the term, the release says, for a conspiracy to prepare false returns that claimed refunds from COVID-19 tax credits, and for assisting with more false returns. WPDE, by Tonya Brown, published at 11:04 p.m. Monday and reported the same five-year term. The station called the sentencing judge a federal judge and left out the name.

WPDE reported that Mitchell is 48. The release does not give an age.

Both accounts place the offices in Lumberton and Hope Mills. In the release they are tax return preparation offices. WPDE says the returns went through businesses in Robeson County and Cumberland County. The county names are the station's. That passage of the release names the cities.

From April 2022 through May 2023, Mitchell and seven employees filed false returns seeking almost $24 million, the release says. The claims used paid sick and family leave credits. The release calls those credits a COVID-19 measure Congress passed for businesses that were struggling. WPDE reported those months, that employee count, and nearly $24 million in refunds sought. It described the credits as pandemic aid for businesses under financial strain.

Mitchell's own actions caused the IRS to issue about $13,890,697 in refunds, the release says. That was more than half of the money in the scheme. WPDE rounded the refund total to about $13.9 million and also put the share at more than half.

The court ordered a forfeiture money judgment of $13,890,697. The release and the station both print that figure.

Mitchell pleaded guilty to a conspiracy count and to preparing and filing false tax returns, both accounts say.

Whitnee Leach, the office manager, pleaded guilty in May 2026 to the conspiracy and to filing false returns. WPDE reported that job and that plea. The other six defendants pleaded guilty to preparing and filing client returns. The release calls those returns false. The station calls them fraudulent.

Five co-conspirators had already been sentenced, both accounts say. On Sept. 3, 2026, Tiffany Moody received a term the release calls "over two years" and WPDE calls "more than two years." On July 8, Shaneen Ray and Eyoubo McBurney each received 18 months, and Sylvia Swindell received 16 months. On July 9, Katrena Stanback received six months.

WPDE wrote that this sentence means six defendants in the conspiracy have been sentenced, and that two who entered guilty pleas have not been sentenced. It tied that tally to information prosecutors released. Seven co-conspirators had pleaded guilty and five of them had been sentenced, according to the release. The release does not print the words "six sentenced."

The release identifies the announcing prosecutor as W. Ellis Boyle, U.S. attorney for the Eastern District of North Carolina. The quotation there is attributed to U.S. Attorney Ellis Boyle. He said the nearly $24 million in fraudulent refunds "were not the result of mistakes or oversight." WPDE carried that clause and attributed it to him. This story does not quote the rest of the statement.

IRS Criminal Investigation is investigating the case, the release says. WPDE referred to federal investigators and to federal prosecutors. The station copy read here does not name that agency.

Related coverage

A different COVID-era fraud case in Robeson County, a disaster-loan plea by another defendant, is not this prosecution: earlier file. Other Robeson County stories are on the county page.

What these accounts leave out

Neither page used here gives a home address. No address is added here. Neither page gives the hour of the hearing. The 11:04 p.m. line is when WPDE published. The station's count of people still awaiting sentence does not give their names.

Triangle Local is not the U.S. Attorney's Office or the IRS, and it is not an emergency service. If anyone is in danger, call 911.

Photos

Text-only. No photograph of a defendant is used. No image from IRS Criminal Investigation or from WPDE is used.