Janet Yamanaka Mello, a former Army civilian employee who orchestrated a massive fraud scheme by siphoning over $108 million from a military grant program, received a 15-year sentence in federal prison. As reported by the U.S. Attorney's Office, Mello, operating under her financial program manager role at U.S. Army, Installation Management Command – G9 (Morale, Welfare and Recreation) Child and Youth Services (CYS) at Fort Sam Houston, defrauded the 4-H Military Partnership Grant program.
While deceiving the system from December 2016 to August 2023, the 57-year-old Mello funneled federal funds designated for military dependents and their families into a shell company named Child Health and Youth Lifelong Development (CHYLD). Court documents indicated that Mello, who had access to the grant funds because of her position, took advantage of her authority to create the fraudulent company. Spending the ill-gotten gains on personal luxuries including clothing, vehicles, and expensive jewelry was her main aim behind the scheme. Over six years, she repeated this cycle 49 times, raking in about $108,917,749.
In addition to mail fraud convictions, Mello was found guilty on charges of filing false tax returns, deliberately omitting to report millions derived from her fake company. U.S. Attorney Jaime Esparza emphasized the severity of the betrayal: "Janet Mello betrayed the trust of the government agency she served and repeatedly lied in an effort to enrich herself," he said. Mello’s extravagant lifestyle included the purchase of more than 80 vehicles and over 1,500 pieces of jewelry while federal funds were diverted from their noble purpose of supporting military families throughout the world, as reported by the U.S. Attorney's Office.
The investigation, a collaborative effort between Criminal Investigation (CI) and the Army Criminal Investigation Division (CID), uncovered the extravagant purchases that indicated a lifestyle unaligned with Mello's reported income. Acting Special Agent in Charge Lucy Tan, reflecting on the gravity of the crime, articulated, "Financial crimes have victims, and this one took opportunities away from the children and families of our military men and women." The case was prosecuted by Assistant U.S. Attorneys Justin Simmons, Antonio Franco, Kristy Callahan, Todd Keagle, and Steven Seward.
