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Business Owner Pleads Guilty to Embezzlement of State Property

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Filed March 16th, 2026
Detected March 17th, 2026
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Summary

A Rowan County businesswoman, Melissa Anne Fleming, pleaded guilty to embezzling approximately $123,756.53 in North Carolina Sales Tax. She was sentenced to a suspended prison term and ordered to pay restitution.

What changed

Melissa Anne Fleming, 63, a former businesswoman from Rowan County, has pleaded guilty to one felony count of Aid and Abet Embezzlement of State Property. The North Carolina Department of Revenue filed the charge, which stemmed from Fleming's role as the responsible person for Island Machining, LLC. Between January 1, 2015, and May 31, 2024, Fleming assisted the business in embezzling approximately $123,756.53 in North Carolina Sales Tax that she was obligated to collect and remit.

Fleming received a suspended 16-to-29-month prison sentence and was placed on 24 months of supervised probation. As a condition of her probation, she may be required to serve two days in the Rowan County Jail. Crucially, Fleming paid $123,756.53 in restitution prior to her plea. This case highlights the severe consequences, including potential jail time and financial penalties, for individuals found to be responsible for the embezzlement of state tax funds. Businesses and their responsible persons must ensure strict adherence to tax collection and remittance obligations.

What to do next

  1. Review internal controls for sales tax collection and remittance.
  2. Ensure responsible persons understand their fiduciary duties regarding state taxes.
  3. Consult legal counsel regarding potential liabilities for tax-related offenses.

Penalties

Suspended prison term (16-month minimum, 29-month maximum), 24 months supervised probation, potential jail time, and restitution of $123,756.53.

Source document (simplified)

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Raleigh, N.C. Mar 16, 2026 Today, former Rowan County businesswoman Melissa Anne Fleming, 63, of Cleveland, NC, pled guilty in Wake County Superior Court to one felony count of Aid and Abet Embezzlement of State Property. The felony tax charge was filed by the North Carolina Department of Revenue.

Wake County Superior Court Judge Bryan Collins sentenced Fleming to a 16-month minimum, 29-month maximum prison term. The sentence was suspended and Fleming was placed on supervised probation for 24 months. As a condition of probation, Fleming was ordered to serve two days in the custody of the Rowan County Jail at the discretion of her probation officer. Fleming paid $123,756.53 in restitution prior to the plea.

Information presented in court showed that Fleming, a member of Island Machining, LLC, did assist, or aid and abet the business to embezzle, misapply, and convert to its own use approximately $123,756.53 in North Carolina Sales Tax from January 1, 2015, through May 31, 2024. During this time, Fleming was the responsible person of Island Machining, LLC, and was under a duty to collect, hold in trust, and remit North Carolina Sales Tax to the North Carolina Department of Revenue.

The charge against Fleming resulted from an investigation by special agents with the Department’s Criminal Investigations Division in Raleigh and was prosecuted by the Special Prosecutions attorneys in the office of the Attorney General.

Source

Tax
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Classification

Agency
State DOR
Filed
March 16th, 2026
Instrument
Enforcement
Legal weight
Binding
Stage
Final
Change scope
Substantive

Who this affects

Applies to
Employers Public companies
Geographic scope
State (North Carolina)

Taxonomy

Primary area
Taxation
Operational domain
Compliance
Topics
Criminal Justice Corporate Governance

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