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The Justice Department has reported one of the largest scams in Army history, involving an Army civilian employee accused of defrauding over $100 million.
57-year-old Janet Yamanaka Mello was indicted on ten counts relating to this extensive fraud scheme on Wednesday. These charges include mail fraud, criminal handling of money, and aggravated identity theft. If convicted, Mello faces a potential total of 142 years in prison.
Mello, a financial program manager at Fort Sam Houston in San Antonio, Texas, allegedly created a shell nonprofit, Child Health and Youth Lifelong Development (CHYLD), in 2016. Over seven years, she is accused of diverting funds meant for military children’s programs to this fraudulent entity. By exploiting her position and the trust of her colleagues, Mello reportedly authorized numerous payments to CHYLD, amassing over $100 million.
Mello allegedly used the funds for extravagant personal gains, including luxury jewelry, an extensive collection of 78 vehicles, and 31 properties across various states. Notably, her real estate portfolio comprises of seven million-dollar mansions, such as a 9,364-square-foot estate in Maryland with a massive garage and sprawling land.
Court documents reveal one of her residences, where she stored her jewelry purchases, was bought for over $700,000 in July 2017. Moreover, Mello reportedly has $18 million spread across six bank accounts.
The federal government is seeking to seize these assets as part of the legal proceedings. Mello has pleaded not guilty to all charges.
