Eastern North Carolina joins new Southeast fraud enforcement task force
RALEIGH, NC (WWAY) — The U.S. Attorney’s Office for the Eastern District of North Carolina has joined a new regional partnership aimed at investigating and prosecuting large-scale fraud schemes targeting federal funds.
U.S. Attorney Ellis Boyle announced Tuesday that the office is participating in the Justice Department’s National Fraud Enforcement Division’s Southeast fraud enforcement initiative, which brings together federal and state prosecutors, regulators and law enforcement agencies.
The new task force includes 18 U.S. Attorneys’ Offices, seven state attorneys general, five federal law enforcement agencies and more than 50 state officials across the Southeast.
According to the Justice Department, the initiative is focused on investigating fraud involving public programs, including the Supplemental Nutrition Assistance Program (SNAP), Small Business Administration loans, federal housing assistance and tax fraud.
Federal officials said the task force is currently targeting 17 cases across seven Southeastern states involving more than $350 million in alleged attempted theft from American taxpayers. Prosecutors said recent enforcement actions have resulted in charges involving more than $90 million in alleged losses and the indictment of 12 defendants since July 4.
“This office is fully committed to protecting federal funds intended for the communities, families, and small businesses of Eastern North Carolina,” Boyle said in a statement.
Boyle also highlighted a recent Eastern District of North Carolina case involving a Robeson County tax preparation business owner accused of participating in a COVID-19 tax fraud scheme.
According to prosecutors, Nejlai Mitchell, 48, pleaded guilty to preparing false tax returns seeking fraudulent refunds through COVID-era tax credits. The scheme resulted in nearly $14 million in fraudulent refund claims being paid by the IRS, according to the U.S. Attorney’s Office.
Mitchell faces up to eight years in prison and a potential $500,000 fine when she is sentenced. Prosecutors said seven other tax preparers connected to the case have also pleaded guilty for their roles.
Federal officials said the new partnership is intended to strengthen cooperation between agencies and improve efforts to identify and prosecute fraud cases throughout the Southeast.
