California comedian Carlos Mencia is facing 12 felony charges after Los Angeles County District Attorney Nathan Hochman announced what prosecutors describe as a years-long tax fraud case involving millions of dollars in unreported wealth, as reported by The New York Post.

Hochman unveiled the charges during a Thursday press conference in downtown Los Angeles, accusing Mencia of failing to properly report approximately $8.7 million over a five-year period.

According to the district attorney, the alleged conduct resulted in roughly $300,000 in unpaid taxes to the state of California.

The comedian, whose legal name is Ned Arnel Holness, was arrested Thursday morning at his Encino residence. Authorities said the arrest took place at approximately 7:05 a.m. and was carried out by the Los Angeles County District Attorney’s newly created Business Tax Fraud Unit.

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Prosecutors filed 12 felony counts against Mencia. Six counts relate to personal tax matters, while the remaining six involve his businesses and cover the period between 2019 and 2024.

If convicted on all charges, Mencia could face up to 10 years in prison.

During the announcement, Hochman sharply criticized the comedian’s alleged conduct and said authorities had repeatedly attempted to secure compliance.

Hochman stated that Mencia was among the “500 greatest tax delinquents” and alleged that the comedian received 78 warning notices regarding his tax obligations.

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“Mencia thought maybe taxes were a laughing matter,” Hochman said.

He added, “We will go after for people who chose to take an unfair advantage.”

Hochman also emphasized the importance of financial investigations in prosecuting crime.

“Following the money is an artform. Al Capone was taken down by a tax case. We will use the tax laws appropriately. Loud and clear, the business tax fraud unit is up and running,” he said.

The district attorney noted that he previously worked in tax enforcement matters while serving with the Department of Justice.

After becoming district attorney, he said he observed that relatively few tax cases were being pursued despite the amount of revenue potentially being lost.

“It’s in the million and millions and millions of dollars each year. We ask anyone in LA County to come forward with information,” Hochman said.

According to prosecutors, the case represents the first prosecution brought by the Business Tax Fraud Unit.

The office said the unit was established to investigate complex financial crimes, including payroll tax fraud, falsified business records, alleged theft of taxpayer funds, and underground economy schemes.

Mencia was born in San Pedro Sula, Honduras, and immigrated to the United States as an infant. He was raised in East Los Angeles and rose to national prominence as a stand-up comedian during the mid-2000s.

His career later became associated with allegations from fellow comedians that he had appropriated material from other performers. Mencia has repeatedly denied wrongdoing related to those accusations.

One of the most public disputes occurred in 2007 when comedian Joe Rogan confronted Mencia over claims that jokes had been taken from other comics.

Never forget when Rogan called out Carlos Mencia on stage for stealing jokes from Ari Shaffir, Bobby Lee and George Lopez. of all time the fact he brought Ari on stage too was nuts. Rogan had the crowd against him and got a standing ovation at the end. Mencia never recovered. pic.twitter.com/zRmdEpPPLY

— MikeyBets (@RealMikeyBets) April 2, 2025

At the time, Rogan said, “If someone steals a riff from a song, that s–t’s in the news constantly. Motherf–ker steals s–t and makes it on HBO. They steal s–t, and they put it on television.”

Among the allegations was a joke involving then-California Gov. Arnold Schwarzenegger and a border wall between California and Mexico. Comedian Ari Shaffir claimed Mencia used a similar premise and punchline to one of his own jokes.

The controversy became well known enough that the animated television series South Park later parodied the dispute in an episode depicting Mencia taking credit for another comedian’s joke.

In addition to the current California case, Mencia has faced prior tax-related financial issues.

The Internal Revenue Service previously placed liens on multiple properties he owned in Douglas County, Oregon, over unpaid federal income taxes totaling approximately $1.2 million.

One of those properties was described as a 7,189-square-foot home featuring eight bedrooms and seven bathrooms with an estimated value of $1.5 million.

Mencia also purchased an Encino residence in 2008 for nearly its $4.4 million asking price. The property includes six bedrooms, eight bathrooms, approximately 8,500 square feet of living space, and a six-car garage.

Separately, Mencia discussed criminal activity from his teenage years during a 2006 interview with NPR.

“Somebody owed me money, so this is how stupid I was. I called him up, and I said, ‘I’m coming to your house. If you don’t have my money you better not be there.’ And when I got there the person wasn’t there,” he said.

“I broke into their house, took video equipment, all kinds of stuff, so that I could sell it to make my money back.

“And on the way home I realized, what did I just break into somebody’s house? My God! What is wrong with me?”

Following Thursday’s arrest, Mencia was remanded into custody. Bail was set at $250,000.

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