Comedian Carlos Mencia Pleads Not Guilty to $8.7 Million Tax Evasion Charges Following Los Angeles Mansion Raid

By Zoe Papadakis | Tuesday, 23 June 2026 01:31 PM EDT

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 he 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 that he “thought maybe taxes were a laughing matter” and 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 stated that his client was “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.

Reports described Mencia wearing a shirt reading “Johnny CASH” in large print during the arraignment, looking toward his family, shaking his head and looking down.

His brother, who later posted the reduced bail amount, appeared distraught during proceedings.

According to reports, upon his release from jail Monday evening, Mencia poked his tongue out and laughed.

Zoe Papadakis is a journalist with two decades of experience specializing in media and entertainment. She has worked as a reporter, writer, and editor for newspapers, magazines, and websites.