Mecklenburg County Businessman Charged with Embezzling State Sales Tax
Summary
The North Carolina Department of Revenue has arrested Prakash Mehta for allegedly embezzling approximately $200,902 in state sales tax. Mehta, president of Shivam, Inc., faces felony tax charges and was released on a $100,000 bond.
What changed
Prakash Mehta, 72, of Waxhaw, has been arrested and charged with three felony counts of Embezzlement of State Property by the North Carolina Department of Revenue. The indictments allege that Mehta, as president and responsible person for Shivam, Inc., aided the business in embezzling approximately $200,902.12 in North Carolina Sales Tax collected between January 1, 2022, and March 31, 2024. Mehta was released on a $100,000 unsecured bond, with a court appearance scheduled for February 23, 2026.
This enforcement action highlights the severe consequences of sales tax non-compliance and potential embezzlement. Businesses and responsible individuals must ensure accurate collection and timely remittance of all state sales taxes. Failure to do so can result in criminal charges, significant financial penalties, and imprisonment. Compliance officers should review internal controls for sales tax handling and remittance to prevent similar issues.
What to do next
- Review internal controls for sales tax collection and remittance procedures.
- Ensure all collected sales tax is held in trust and remitted to the North Carolina Department of Revenue by statutory deadlines.
- Verify responsible persons understand their legal duties regarding state sales tax.
Penalties
Felony tax charges, potential imprisonment, and financial penalties associated with embezzlement.
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Raleigh, N.C. Feb 17, 2026 Mecklenburg County businessman Prakash Mehta, 72, of Waxhaw, was arrested today on felony tax charges filed by the North Carolina Department of Revenue. He was charged with three counts of Embezzlement of State Property.
Indictments allege that Prakash Mehta, president and the responsible person of Shivam, Inc. of Charlotte, aided and abetted the business to embezzle, misapply, and convert to its own use approximately $200,902.12 in North Carolina Sales Tax from January 1, 2022, through March 31, 2024. During that time, Mehta was the responsible person of the business, which was under a duty to collect, hold in trust, and remit Sales Tax to the North Carolina Department of Revenue.
Mehta appeared before a Wake County magistrate and was placed under a $100,000 unsecured bond. A first appearance is scheduled for February 23, 2026, in Wake County Superior Court in Raleigh.
The charges against Mehta resulted from an investigation by special agents with the Department’s Criminal Investigations Division in Raleigh.
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