Texas Woman Stole More Than $100 Million in Government Funds and Splurged on Luxury Goods: Authorities
A woman from Texas was sentenced to prison for stealing more than $100 million from a grant program, authorities stated.
Janet Yamanaka Mello, 57, has been convicted on five counts of mail fraud in addition to five counts of filing a false tax return, in federal court in San Antonio, CBS News reported.
Mello was a civilian employee for the Army and worked as a child, youth, and school services financial program manager for the Army Morale, Welfare, and Recreation program at Fort Sam Houston in San Antonio, USA Today reported. Her job was to determine whether funds could be dispersed to parties that applied to the 4-H Military Partnership Grant program.
Mello went on to form a business called Child Health and Youth Lifelong Development, through which she applied for grants from the program, according to court documents, USA Today reported.
From December 2016, through August 2023, Mello applied for over 40 grants from the program she was working for, according to the prosecutors, USA Today reported. She utilized her influence to get approximately $109 million in the name of her fraudulent establishment.
Mello drafted fraud memoranda to make it appear that Child Health and Youth Lifelong Development was eligible to receive grant funds from the military program, USA Today reported. The memoranda were submitted to her supervisor for approval.
"Mello played on the trust she had developed over the years with her supervisors and co-workers to secure the necessary approvals," court documents said. "After receiving the necessary approvals, the paperwork was then passed on to (Defense Finance and Accounting Service) for payment."
The payment was sent to a UPS Store mailbox in the San Antonio area by the Defense Finance and Accounting Service, USA Today reported. After the check arrived Mello deposited it into her personal bank account.
As per the court documents the accused spent more than $788,000 in jewelry in October and November 2022; paying over $264,000 for a 2023 Range Rover; and buying property in Canyon Lake, Texas, for more than $3.3 million.
In December 2023, Mello's actions were discovered by authorities, The New York Post reported.
Mello also did not report her actual income tax for years: 2017, 2019, 2020, 2021, and 2022, USA Today reported. The woman did not mention the millions of dollars that she received through her fraudulent company.
Jaime Esparza, U.S. Attorney, shared, "Her actions reflect exactly the opposite of what it means to serve your country, and my office will continue to work tirelessly to prosecute those who illegally seek personal gain at the expense of their fellow citizens," USA Today reported.
Mello pleaded guilty to the charges in March and was sentenced to 15 years in federal court in San Antonio, USA Today reported.
Mello's defense claims that she feels remorseful for her actions and hopes that the expensive items in her possession could be sold to reimburse the government, the NY Post reported.