Carlos Mencia pleads not guilty to felony tax charges as lawyers slam ‘absurd show of force’
by The Washington Times AI News Desk · The Washington TimesComedian Carlos Mencia pleaded not guilty Monday to 12 felony counts of failure to file tax returns with intent to evade taxes, stemming from allegations he failed to report $8.7 million in income over six years, as his attorneys blasted prosecutors over what they called an excessive use of force in arresting him.
Mr. Mencia, 58, whose legal name is Ned Arnel Holness, entered the plea from behind glass in the custody section of a Van Nuys courtroom during his arraignment, according to reports. He faces six felony counts tied to personal income tax returns and six tied to corporate returns, covering tax years 2019 through 2024, according to a criminal complaint released by the Los Angeles County District Attorney’s Office.
Prosecutors allege Mr. Mencia failed to report roughly $3.3 million in personal income and approximately $5.4 million in corporate income tied to his production and management company, Nedlos Entertainment Inc. Authorities said the unreported income resulted in more than $300,000 in unpaid state taxes, and that Mr. Mencia appears on the California Franchise Tax Board’s list of the state’s 500 largest tax delinquents in both the personal and corporate income categories.
In a sharply worded motion seeking Mr. Mencia’s release on his own recognizance or a reduction in bail, his attorneys criticized the heavy-handed manner of his arrest.
“No one argues against the obligation to pay taxes,” the motion stated, according to The California Post. “But the raid at his home with multiple law enforcement agents, screaming ’search warrant’ with a bullhorn, and drawing guns was an absurd show of force for the alleged offenses that do not involve weapons, drugs or violence.”
Defense attorney Dana Cole also disputed the legal basis for holding her client on a bail-source hold — a mechanism that prevents defendants from posting bail when authorities believe the funds were obtained through illegal means. Ms. Cole argued the hold was inappropriate because the case involves alleged failures to file and pay taxes, not a claim that Mr. Mencia earned money unlawfully.
The court ultimately reduced Mr. Mencia’s bail from $250,000 to $50,000 following the arraignment. Court documents indicate he posted bail, though it was unclear at press time whether he had been released from custody.
Defense filings also noted that Mr. Mencia’s incarceration cost him four nights of scheduled performances, resulting in approximately $40,000 in lost income.
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“The defendant has now already paid a steep price by damaging his national reputation, incarcerating him for several days without the opportunity to post bail and missing out on four nights of a booked venue,” the filing stated, according to The California Post.
Los Angeles County District Attorney Nathan Hochman announced the charges Thursday, saying the California Franchise Tax Board had mailed 78 notices to Mr. Mencia’s residence over the six-year period informing him of his obligation to file tax returns.
“Yet, he was 0 for 78,” Mr. Hochman said, according to FOX 5.
The case is the first prosecution brought by Mr. Hochman’s newly formed Business Tax Fraud Unit, which was established in May 2026 to pursue individuals and businesses suspected of intentional criminal tax violations. Mr. Hochman said he created the unit in part to fill a void left by the federal government’s retreat from tax enforcement.
“We used to have a very vibrant tax section in the U.S. Attorney’s Office across the street,” he told The Hollywood Reporter. “We don’t anymore. The old unit I came from, which is the tax division in the U.S. Department of Justice, doesn’t exist on the criminal side anymore.”
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Producer Nicole “Nikki” Rosenson submitted a letter to the court arguing Mr. Mencia is not a flight risk, describing him as someone who regularly mentored younger comedians.
“It’s important to me that Carlos’ character is not reduced to a singular thing. He is a loving father and a loyal, kind friend,” Ms. Rosenson wrote, according to the California Post.
Mr. Mencia, born in Honduras, rose to prominence through his stand-up career in Los Angeles clubs during the 1980s. He later headlined his own Comedy Central series, “Mind of Mencia,” which ran from 2005 to 2008.
Mr. Mencia is due back in court Aug. 14. If convicted on all counts, he faces up to 11 years and four months in state prison.
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