Nejlai Mitchell And Seven of Her Employees Pleads Guilty in $13.8 Million Robeson County COVID Tax Fraud Scheme
The federal government has caught up with a Robeson County tax preparer accused of turning the COVID-19 pandemic into a multi-million-dollar payday.
Nejlai Mitchell, 48, the owner of tax preparation businesses operating in Lumberton and Hope Mills, pleaded guilty in federal court to conspiring to prepare false tax returns and fraudulently claiming COVID-19 tax credits that prosecutors say cost the Internal Revenue Service nearly $13.9 million.
According to court records, Mitchell admitted to orchestrating a scheme that flooded the IRS with fraudulent tax returns packed with bogus COVID-era tax credit claims, resulting in the government paying out approximately $13,890,697 in refunds that never should have been issued.
Now, the longtime tax business owner is facing a maximum sentence of eight years in federal prison, a $500,000 fine, and has agreed to forfeit $13,890,697 as part of a forfeiture money judgment.
Federal Prosecutors Say the Fraud Ring Ran for More Than a Year
Court documents reveal the conspiracy operated from approximately April 2022 through May 2023.
Federal investigators say Mitchell didn’t work alone.
Prosecutors say she worked alongside seven employees who allegedly helped prepare and submit fraudulent federal income tax returns loaded with false COVID-19 tax credit claims designed to generate huge IRS refunds.
Those employees include:
- Tiffany Moody
- Shaneen Ray
- Eyoubo McBurney
- Katrena Stanback
- Jeannie Negron
- Sylvia Swindell
- Whitnee Leach
According to prosecutors, the fraudulent filings ultimately caused the IRS to issue nearly $14 million in improper refunds.
Every Employee Named in the Scheme Has Already Pleaded Guilty
Mitchell becomes the final major defendant to admit guilt after every one of her alleged co-conspirators entered guilty pleas over the past two years.
Federal court records show:
- 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.
- Whitnee Leach pleaded guilty in May 2026.
Mitchell will be sentenced at a later date, where a federal judge will determine how much prison time she will serve.
