A Texas woman, Janet Yamanaka Mello, has been sentenced to 15 years in federal prison for stealing nearly $109 million from a youth development program for children of military families. Mello, 57, pleaded guilty to five counts of mail fraud and five counts of filing a false tax return.
Mello, a civilian employee at Fort Sam Houston in San Antonio, was a financial manager responsible for handling funding for a youth program at the military base. She created a fraudulent group called Child Health and Youth Lifelong Development to siphon off funds.
Prosecutors revealed that Mello used the stolen money to finance an extravagant lifestyle, purchasing multiple mansions, a fleet of luxury cars, and designer accessories. In one instance, she spent $923,000 on jewelry in a single day in 2022.
Assistant US Attorney Justin Simmons stated that Mello submitted over 40 fraudulent grant applications over six years, illegally obtaining the substantial sum. She used the funds to acquire millions of dollars worth of real estate, high-end jewelry, and 82 vehicles, including luxury brands like Maserati, Mercedes, and Ferrari.
Despite her remorse, Mello's actions were described as a betrayal of trust by US Attorney Jaime Esparza for the Western District of Texas. The IRS Criminal Investigation's field office in Houston highlighted Mello's penchant for extravagance as the downfall of her criminal enterprise.
While Mello's defense attorney, Albert Flores, expressed her remorse and willingness to repay the debt to society, the judge handed down a 15-year sentence. The defense has no plans to appeal the decision.
Denise Faison, a co-worker and friend of Mello, defended her character in a letter to the judge, emphasizing Mello's positive traits. However, the court deemed the severity of the crime warranted a significant prison term.
