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Carlos Mencia Arrested on 12 Felony Tax Evasion Counts Totaling $8.7 Million

The charges are the first case filed by the Los Angeles County DA's newly established Business Tax Fraud Unit, created in May 2026.

Tech. Sgts. Christian Craig and Robert Young, 512th Security Forces Squadron Airmen currently assigned to the 506th Expeditionary SFS, are pictured with Kid Rock (center wearing black), Carlos Mencia (center left), and Jessie James (center right), following a December 4 concert at Kirkuk Regional Ai
Tech. Sgts. Christian Craig and Robert Young, 512…      Carlos Mencia    U.S. Air Force photo / Wikimedia Commons (Public domain)
By Free News Press Editorial Team
Published June 19, 2026 at 1:03 AM PDT

Comedian Carlos Mencia was arrested Thursday and remains in custody on 12 felony counts of tax evasion, after allegedly failing to report $8.7 million in personal and corporate income over six years.

Los Angeles County District Attorney Nathan J. Hochman announced the charges, which cover tax years 2019 through 2024. The case is the first filed by the DA's Business Tax Fraud Unit, a specialized unit established in May 2026 to prosecute business tax-related offenses.

According to the complaint, Mencia, whose legal name is Ned Arnel Holness, allegedly failed to file any taxes during that six-year period. He faces six felony counts of failure to file personal income tax with intent to evade and six felony counts of failure to file corporate income tax with intent to evade. The charges correspond to each of the six years he allegedly did not file.

The alleged unreported income breaks down to approximately $3.3 million in personal income and approximately $5.4 million in corporate income through his company Nedlos Entertainment, Inc., of which Mencia is CEO and owner. The California Franchise Tax Board sent 78 demand notices to his residence during the period, informing him of his obligation to file.

The total tax amount Mencia allegedly owes California is just over $300,000: approximately $267,594 in personal income taxes and approximately $35,117 in corporate income taxes.

Hochman issued a pointed statement alongside the announcement.

"Mr. Mencia has an income most people can only dream of, and like everyone else he is required to file his personal and corporate tax returns and pay his fair share," Hochman said. "Failing to report millions of dollars in income is a slap in the face to hardworking Californians who diligently file and pay their taxes every year because they care about their communities and the public goods, like police, fire, roads, and utilities, their tax dollars provide. Today we are sending a message to the tax scofflaws that it is no longer business as usual in Los Angeles County — the days of a free pass for failing to file returns and pay taxes are over."

Mencia is best known for his Comedy Central series Mind of Mencia, which aired from 2005 to 2008. More recently, he has done voice work on The Proud Family: Louder and Prouder.

If convicted on all counts, he faces up to 11 years and four months in state prison. Arraignment is scheduled for June 22 in Department 100 of the Van Nuys Courthouse. Bail is set at $250,000.

Carlos Mencia and Jessie James taking a break from signing autographs at the RAF Lakenheath Base Exchange for a group photo with Liberty Warriors on December 11, 2009
Carlos Mencia and Jessie James taking a break fro…      Carlos Mencia    U.S. Air Force photo by Staff Sgt. Connor Estes / Wikimedia Commons (Public domain)