A U.S. Army civilian employee is charged with attempting to defraud the government of more than $100 million in taxpayers’ funds.
A federal grand jury has indicted her on 10 counts of fraud, alleging that she diverted money from her job into a sham company she established that was supposed to be dedicated to addressing the physical and mental health needs of children.
The Justice Department released a statement on the indictment, which claimed Janet Yamanaka Mello, who worked as a civilian financial program manager at Fort Sam Houston in San Antonio, Texas, stole millions of Army funds “by regularly submitting fraudulent paperwork that indicated an entity she controlled, Child Health and Youth Lifelong Development (CHYLD), was entitled to receive funds” from the military branch.
Authorities say for almost seven years, she pulled the money from the 4-H Military Partnership Grant program to fund this bogus enterprise under the guise that CHYLD would “provide meaningful youth development opportunities for military-connected children.”
The indictment states that Mello “played on the trust she had developed over the years with her supervisors and co-workers to secure the necessary approvals.”
Mello is now facing charges including five counts of mail fraud, four counts of engaging in a monetary transaction exceeding $10,000 using unlawfully acquired proceeds, and one count of aggravated identity theft, according to the U.S. Attorney’s Office.
Each fraud charge carries a potential prison sentence of up to 20 years, each spending statute charge carries a maximum of 10 years each, and a mandatory minimum of two years for the aggravated identity theft charge. If convicted as charged, Mello could be sentenced to a maximum of 142 years in prison.
As per the statement, she represented to the government that her organization provided essential services to military members and their families. However, instead of fulfilling service orders, she allegedly misappropriated funds, using them to acquire millions of dollars worth of jewelry, clothing, vehicles, and real estate.
According to court records, Mello purportedly utilized the embezzled funds to accumulate an extensive real estate portfolio, which included 31 properties.
Among the opulent holdings is an approximately $3.1 million estate in Maryland featuring eight bedrooms on 58 acres and a 55-car garage. Another property Mello has is an approximately $1.1 million residence in San Antonio, Texas.
In addition to her real estate holdings, she possessed an impressive fleet of 78 vehicles. Among her collection were notable cars such as a 1967 Chevrolet Camaro SS, a ’66 Chevrolet Chevelle SS, a ’66 Ford Mustang, a ’54 Chevrolet Corvette, a 1935 Plymouth Sedan, five Triumphs, an 018 Maserati GranTurismo sports car, a 1954 Chevrolet Corvette, a 1966 Ford Mustang, five Mercedes-Benzes, two Aston Martins, four Ducati motorcycles, two BMWs, and a 1955 Ferrari Fratelli 165 Racer.
The estimated values of these vehicles ranged from $100,000 to $200,000 each.
Court records state she owned 16 Harley-Davidson motorcycles that range in age from a 1911 7 Single to a 2021 Pan America.
She also has a substantial jewelry collection.
More creatively, the DOJ claims she had over $18 million seized from six different bank accounts that were somehow tied to her name.
The 57-year-old was further accused of repeatedly falsifying the digital signature of one of her supervisors to facilitate the release of funds.
The indictment, which was announced on Dec. 6, 2023, also includes a notice of forfeiture for the proceeds and properties acquired through the alleged criminal conduct. This means all of those assets, properties, and money made have to be turned over.
Mello appeared before U.S. Magistrate Judge Henry J. Bemporad of the U.S. District Court for the Western District of Texas on Dec. 14, 2023. She was released without bail and is required to reach a plea deal by Jan. 19 or face jury selection and trial scheduled for Feb. 12.
Her defense lawyer released a statement regarding the case via email to The Messenger.
“It is very early in the case and I expect the evidence to be extensive. We will need time to review it,” Albert Flores said. “I do not believe that the case will be resolved by those initial dates,” he added.
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