A Texas woman exploited her role at a military base to steal nearly $109 million from a youth program meant for military families, using the funds to fuel an extravagant lifestyle.
Janet Yamanaka Mello’s lavish purchases included multiple mansions, luxury cars, and designer accessories, which were funded by the embezzled money. Her years of deceit and manipulation culminated in a 15-year federal prison sentence.
Texas Woman Sentenced for $109 Million Fraud
A Texas woman who embezzled nearly $109 million from a youth development program for military families was sentenced to 15 years in federal prison. Janet Yamanaka Mello, 57, funded a lavish lifestyle with the stolen money, buying mansions, luxury cars, and designer accessories.
Judge Delivers Verdict
U.S. District Judge Xavier Rodriguez handed down the sentence after Mello pleaded guilty in March to multiple counts of mail fraud and filing false tax returns. The charges reflect the extent of her deceit and financial crimes.
Lavish Spending Exposed
Prosecutors revealed that Mello, a civilian employee at Fort Sam Houston, used the stolen funds to indulge in luxury, including spending $923,000 on jewelry in a single day. Her position as a financial manager gave her access to grant money, which she misappropriated for personal use.
Fake Program Created
Mello created a bogus group, Child Health and Youth Lifelong Development, to funnel the stolen money. Her actions diverted millions away from programs meant to benefit military children worldwide.
Betrayal of Trust
U.S. Attorney Jaime Esparza condemned Mello’s actions, highlighting her betrayal of the government agency she served. The funds intended for military children’s care were instead spent on extravagant purchases.
Defense Claims Remorse
Defense attorney Albert Flores stated that Mello is deeply remorseful for her actions. He emphasized her shame and regret over the crime.
Plans to Reimburse
Mello has retained many of the purchased items, intending to sell them to reimburse the government. Flores noted that while they feel the court didn’t fully acknowledge this effort, they will not appeal the decision.
Elaborate Fraud Scheme
Prosecutors detailed how Mello used her fake organization to secure grants from the military program. Over six years, she submitted more than 40 fraudulent applications, netting nearly $109 million.
Extravagant Purchases
With the stolen money, Mello bought millions in real estate, luxury clothing, high-end jewelry, and 82 vehicles, including a Maserati, Mercedes, 1954 Corvette, and Ferrari Fratelli motorcycle. Many vehicles were found unused with dead batteries during a 2023 search.
Exploiting Trust
Mello’s extensive experience and deep knowledge of the grant program allowed her to execute the scheme undetected. Her trusted position among supervisors and coworkers facilitated her fraudulent activities.
Downfall Through Extravagance
Acting special agent Lucy Tan from the IRS Criminal Investigation’s Houston office remarked that Mello’s excessive spending ultimately led to her downfall. Her luxurious lifestyle attracted attention and scrutiny.
Character Defense
Denise Faison, a co-worker and friend, wrote a letter defending Mello’s character. Faison described her as kind and caring, urging the judge to consider her potential to contribute positively to society outside of prison.
