The entrance to Joint Base San Antonio-Fort Sam Houston in Texas on July 26, 2022. (Rose L. Thayer/Stars and Stripes)
A former Army civilian employee who stole more than $108 million in grant money earmarked for military children and spent the money on jewelry, cars and luxury homes was sentenced Tuesday to 15 years in prison, according to the Justice Department.
Janet Yamanaka Mello, 57, used her position as a financial program manager for the Army Installation Management Command’s Child and Youth Services at Joint Base San Antonio-Fort Sam Houston in Texas to pocket grant money intended for military families through a shell organization that she created, according to court documents.
She pleaded guilty in March to five counts of mail fraud and five counts of filing a false tax return in federal court in San Antonio.
“Corruption and fraud in U.S. Army programs jeopardize the safety and security of our soldiers and their families. When discovered, fraudulent activities by Army employees will not be tolerated, and those involved will be brought to justice,” said Special Agent in Charge Maria Thomas for the Central Texas office of the Army’s Criminal Investigation Division.
Defense attorney Albert Flores said Mello is deeply remorseful and there are no plans to appeal, according to The Associated Press.
Mello has saved many things that she purchased with the money and hopes the items are sold to reimburse the government, Flores told the AP.
“I don’t think the court gave us enough credit for that, but we can’t complain,” he said.
Beginning in about December 2016 through at least Aug. 29, 2023, Mello formed a business she called Child Health and Youth Lifelong Development, or CHYLD, according to federal officials. The sole purpose of CHYLD was to receive grant funds from the 4-H Military Partnership Grant program, which Mello fraudulently secured by way of her position as a financial program manager.
The grant program helps military children participate in projects with 4-H, which is a traditionally farming-focused network of youth organizations administered by the Department of Agriculture.
Once Mello received a grant check, she deposited the check into her bank account, spending the money on luxuries including fine jewelry, a home in Colorado that boasted a five-car garage, a 60-acre estate in Maryland, a Range Rover, a 1954 Corvette and a 1905 Indian motorcycle.
Court documents show Mello did this 49 times in six years, requesting roughly $117,000,000 in payments and receiving about $108,917,749.
But Mello failed to report her income accurately on her taxes for 2017, 2019, 2020, 2021 and 2022, omitting millions of dollars in income fraudulently received through CHYLD.
“Mello’s penchant for extravagance is what brought her down,” said acting Special Agent in Charge Lucy Tan of the Houston office of the IRS Criminal Investigation unit. “Financial crimes have victims, and this one took opportunities away from the children and families of our military men and women.”
Court documents itemize Mello’s property, which included 31 plots of real estate in states including Texas, Washington and New Mexico; 35 vehicles; 42 motorcycles; three boats; and one travel trailer.
In July, the court ordered Mello to forfeit more than 2,400 pieces of jewelry, purses, clothing and shoes seized from her properties and itemized in a 70-page court document. The list included dozens of Louis Vuitton handbags, a Burberry coat and hundreds of diamonds set in earrings, necklaces, rings and bracelets.
