EDNC US Attorney’s Office Joins New Southeast Fraud Enforcement Partnership

RALEIGH, N.C. - Ellis Boyle, United States Attorney for the Eastern District of North Carolina, joined the Justice Department's National Fraud Enforcement Division in announcing sweeping fraud enforcement actions alongside a new, dedicated, federal and state anti-fraud task force in North Carolina and across the Southeast. Following a major strategic roundtable emphasizing the partnerships forged amongst federal and state prosecutors, regulators, and law enforcement agencies, DAG Colin McDonald, the National Fraud Czar heading the DOJ efforts in this battle, led a press conference in Columbia, S.C. In support, 18 U.S. Attorneys' Offices, including the EDNC, seven State Attorneys General, five federal law enforcement agencies, and over 50 state officials announced their ironclad efforts in exposing and prosecuting systemic fraud. Press Conference Link: https://youtu.be/RaJJlIlaIWULinks to other government and non-government sites will typically appear with the "external link" icon to indicate that you are leaving the Department of Justice website when you click the link.

The DOJ's National Fraud Enforcement Division established this joint taskforce to aggressively track, investigate, and prosecute regional financial fraud stealing federal taxpayer dollars. The sweeping southeast regional initiative targets 17 distinct cases currently prosecuted across seven Southeastern states, highlighting more than $350 million in attempted theft perpetrated against American taxpayers. Prosecutors prioritize systemic public program abuse involving SNAP benefits, Small Business Administration (SBA) loans, federal housing assistance, and tax fraud. Showing immediate results, federal prosecutors surged enforcement actions, charging crimes in cases that account for over $90 million in losses and indicting 12 named defendants since July 4 alone.

"This office is fully COMMITTED to protecting federal funds intended for the communities, families, and small businesses of Eastern North Carolina," said U.S. Attorney Ellis Boyle. "By combining forces with our state, local, and federal law enforcement partners and launching this new anti-fraud task force, we will ensure that those who attempt to line their pockets through deception face swift federal justice. If you steal from the American people: we are looking for you; we will find you; we will convict you; and you will hibernate behind cold steel bars. Cheaters. Never. Win."

To illustrate recent crackdown efforts in the EDNC, Mr. Boyle described a June conviction where a Robeson County woman, who owned a North Carolina tax filing franchise, pleaded guilty to a massive Covid tax fraud scheme in federal court. Nejlai Mitchell, 48, admitted to preparing false returns claiming fraudulent refunds based on COVID-19 tax credits and submitting false tax returns. The conspiracy resulted in the IRS paying out almost $14 MILLION in fraudulent tax refund claims. Mitchell faces a maximum term of eight years in prison and a $500,000 fine when a federal judge sentences her later this year. Seven other tax return preparers who worked for her have already pleaded guilty for their roles in the same multi-million-dollar fraud scheme$25M Pandemic-Relief Fraud Scheme.