U.S. Army Employee Receives 15-Year Sentence for Embezzling $109 Million

A federal court has sentenced Janet Yamanaka Mello, 57, to 15 years in prison for orchestrating a fraudulent scheme that siphoned over $100 million from a military grant program intended to support children and families of service members. Mello, who served as a financial manager for the Army Morale, Welfare, and Recreation program at Fort Sam Houston, was convicted on multiple counts of mail fraud and filing false tax returns. Her fraudulent activities spanned six years, during which she exploited her position to establish a business that served as a front for her illegal operations. Mello founded Child Health and Youth Lifelong Development in December 2016, with the sole purpose of collecting funds through military grants. Instead of utilizing the money for the intended youth and family services, she diverted the funds into her personal accounts, indulging in luxury purchases. Prosecutors revealed that Mello used the stolen grant money to acquire lavish properties, over 80 vehicles—including high-end brands like Maserati and Ferrari—and an extravagant $923,000 jewelry purchase in a single day. U.S. Attorney Jaime Esparza condemned Mello's actions, stating that she betrayed the trust of the government and misappropriated funds meant for military families. He emphasized the commitment of his office to prosecute individuals who exploit public resources for personal gain. Mello's defense attorney expressed her remorse, noting that she acknowledges her wrongdoing and hopes to reimburse the government by selling the luxury items she purchased with the stolen funds. The defense has indicated no intention to appeal the court's ruling.