The dramatic raid, executed by a joint task force of IRS Criminal Investigation Division agents and FBI financial crimes specialists, targeted Archewell’s sleek Montecito headquarters just after 6 a.m. PST.

Armored vehicles screeched to a halt outside the palm-fringed offices, where agents – clad in tactical vests emblazoned with “IRS-CID” – stormed through glass doors, seizing servers, hard drives, ledgers, and stacks of financial records spanning the past five years.

Eyewitnesses described a scene straight out of a Hollywood thriller: “It was chaos,” one stunned employee told TMZ on condition of anonymity. “Meghan arrived in her Range Rover, flanked by security, but they wouldn’t let her past the perimeter.

She was yelling into her phone, face like thunder. Harry showed up 20 minutes later, looking shell-shocked. By noon, the whole place was taped off like a crime scene.”

The suspension order, filed under seal but leaked to The Hollywood Reporter within hours, prohibits Archewell from soliciting donations, spending funds, or conducting any business until further notice. Court documents accuse the company of “systematic evasion of federal tax obligations” and “structuring transactions to obscure the flow of illicit funds through charitable vehicles.” Sources close to the probe say authorities were “stunned” by what they uncovered during the initial sweep – revelations that could not only dismantle Archewell but ripple across the Sussexes’ entire $100 million-plus brand.

At the heart of the scandal: Archewell’s tangled web of finances, where millions in donor money appear to have vanished into offshore accounts, luxury real estate purchases, and opaque grants to politically aligned nonprofits. According to a 47-page affidavit unsealed Wednesday, investigators flagged over $11 million in discrepancies from Archewell’s 2021-2024 tax filings (Form 990s), including a mysterious $10 million “anonymous donation” routed through the Silicon Valley Community Foundation – a tax haven notorious for shielding ultra-wealthy benefactors.

But the real bombshell? During the raid, agents discovered encrypted emails and wire transfer logs suggesting Archewell funneled at least $4.2 million to Democratic political operatives and advocacy groups under the guise of “philanthropic grants.” One email chain, dated October 2022, allegedly shows Meghan Markle personally approving a $750,000 transfer to a media watchdog nonprofit – a group later revealed to have lobbied for “misinformation” censorship laws favoring Big Tech allies. “This wasn’t charity,” a federal prosecutor told CNN anonymously. “It was a slush fund. They used Archewell to launder influence money, dodging taxes while buying political favors.”

Meghan, 44, and Harry, 41, were not present during the raid but were reportedly questioned separately by IRS agents in a Beverly Hills conference room that afternoon. Insiders say the Duchess was “visibly furious,” slamming her fist on the table and demanding to know “who leaked this to the press.” Harry, ever the diplomat, remained stoic but was seen wiping away tears as he left. Their spokesperson issued a defiant statement via Instagram at 8:47 p.m.: “Archewell is the victim of a politically motivated witch hunt. We have always operated with full transparency and compassion. These baseless allegations will be vigorously contested in court.”

Yet the evidence, as outlined in court papers, paints a far grimmer picture. Archewell Inc. – launched in 2020 alongside the nonprofit Archewell Foundation – was meant to be the Sussexes’ beacon of “compassionate media.” It produced Netflix’s Harry & Meghan docuseries, Spotify’s Archetypes podcast, and high-profile charity events. But filings show administrative costs ballooned to 85% of revenues by 2023, with “consulting fees” paid to shell companies linked to the couple’s inner circle.

The probe traces back to a whistleblower tip in March 2025: a former Archewell accountant, fired amid a 2024 staff exodus, alleged executives pressured her to “backdate invoices” for a $2.8 million payment to an unnamed British film production firm – widely speculated to be a front for Harry’s memoir Spare royalties funneled tax-free. “They told me it was for ‘veterans’ aid,’” the whistleblower claimed in a sworn deposition. “But the money went to a Cayman Islands account tied to Meghan’s lifestyle brand, As Ever.”

Delaware incorporation – a red flag for tax dodgers – allowed Archewell to exploit lax reporting rules, investigators say. One seized ledger details a 2023 “restructuring” where $6.5 million in Netflix advances was reclassified as “foundation endowments,” evading California state taxes. Another entry: a $1.2 million wire to a Montecito contractor for “home renovations” – billed against charitable funds but actually enhancing the Sussexes’ $14.7 million mansion.

The money laundering angle deepened with links to international donors. Prosecutors allege Archewell accepted $3 million from a shadowy Qatari investor in 2022, routed through a London-based NGO Harry co-chairs. “It’s classic layering,” an FBI source explained. “Funds bounce from charity to production company to offshore trusts, emerging clean for personal use.” Stunningly, one document references a “consultation fee” of $500,000 paid to Ghislaine Maxwell’s former associate – a nod to the Epstein scandal that rocked the royals just weeks ago.

Back in London, the fallout has Buckingham Palace on high alert. King Charles III, 77, cut short a state visit to Canada upon hearing the news, retreating to Balmoral for “family consultations.” Sources say the monarch is “heartbroken but not surprised,” viewing the scandal as the final nail in his son’s self-exile. Prince William, 43, reportedly convened an emergency war room at Kensington Palace, briefing aides: “This taints us all. We cannot let Harry’s mess drag down the Crown.”

Public reaction has been volcanic. #ArchewellScam trended globally within hours, amassing 12 million posts on X (formerly Twitter). Protesters – a mix of royalists and charity watchdogs – gathered outside the Sussexes’ gated community, chanting “Return the Royals’ Money!” Counter-supporters, waving #JusticeForMeghan signs, decried it as “racist persecution of a Black woman’s success.” Late-night hosts pounced: Jimmy Kimmel quipped, “Meghan’s turning charity into a heist movie – Ocean’s Archewell.”

Financially, the Sussexes are reeling. Netflix suspended Harry & Meghan Season 2 production indefinitely, citing “contractual compliance issues.” Spotify, already estranged after axing Archetypes, issued a frosty statement: “We take allegations of financial impropriety seriously.” Archewell’s website crashed under traffic, displaying only a boilerplate denial. Insiders estimate the couple’s net worth could plummet by $40 million if assets are frozen.

Meghan’s inner circle is fracturing. Tyler Perry, a longtime mentor, reportedly distanced himself via text: “I love you, but this is too hot.” Oprah Winfrey, suspected of the $10 million donation, went radio silent. Even Beyoncé, slated for an As Ever ambassador role, pulled out amid the chaos.

As night fell over the Pacific, Meghan and Harry were spotted at a private helipad, boarding a chopper bound for an undisclosed location – rumored to be a Vancouver safe house. “They’re scared,” a friend confided to People. “This isn’t just about money. It’s their legacy crumbling.”

For the woman once dubbed “Hollywood’s new Diana,” the irony stings. Archewell was her phoenix from royal ashes – a platform for empowerment, storytelling, and global good. Now, it’s a pyre of shredded documents and shattered trust.

Federal prosecutors vow a full indictment by year’s end. “We followed the money,” one said. “And it led straight to the top.”

In the gilded ruins of their American dream, the Sussexes face a reckoning. Will they fight, flee, or fold? One thing’s certain: the fairy tale is over. And the bill – for taxes, trust, and truth – is coming due.