ROBESON COUNTY, N.C. (WPDE) — A Robeson County woman, who owned a tax return preparation business has pled guilty to conspiring to prepare false returns claiming fraudulent refunds based on COVID-19 tax credits, and assisting in the preparation of false tax returns, according to a news release from the U.S. Department of Justice.
The release said Nejlai Mitchell, 48, faces a maximum term of eight years in prison, and a $500,000 fine when sentenced later this year.
Mitchell will also be ordered to pay a Forfeiture Money Judgment of nearly $14 million.
Seven other tax return preparers have already pleaded guilty for their roles in the same fraud scheme.
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According to court documents and statements made in court, Mitchell owned and operated a tax return preparation business out of Lumberton and Hope Mill.
The…
PAYROLL & HR CONTROLS (PREVENTING “GHOST” SCHEMES)
Payroll fraud is often the hardest to detect because it “looks” like a normal business expense.
- Segregation of Duties (SoD): The person who adds new employees to the system must not be the same person who approves the monthly pay run.
- Mandatory Vacation Policy: Require all financial and HR staff to take 5–10 consecutive days of leave annually. Fraud often surfaces when the perpetrator isn’t there to “hide” the trail.
- Ghost Employee Audit: Perform a quarterly “Headcount Reconciliation” where managers must physically verify every name on their payroll list exists.
- Self-Pay Blocking: Ensure the payroll software has a hard-coded block preventing administrators from editing their own salary or bank details.