Former US Army civilian employee sentenced to 15 years for stealing nearly $109 million

A Texas woman who was a civilian employee of the U.S. Army at Fort Sam Houston in San Antonio was sentenced Tuesday to 15 years in prison for stealing nearly $109 million from a youth development program for children of military families.

Janet Yamanaka Mello, 57, was sentenced by U.S. District Judge Xavier Rodriguez in federal court in San Antonio after pleading guilty in March to five counts of mail fraud and five counts of filing a false tax return.

Prosecutors say Mello, as financial manager who handled funding for a youth program at the military base, determined whether grant money was available. She created a fraudulent group called Child Health and Youth Lifelong Development.

“Janet Mello betrayed the trust of the government agency she served and repeatedly lied in an effort to enrich herself,” said U.S. Attorney Jaime Esparza for the Western District of Texas.

“Rather than $109 million in federal funds going to the care of military children throughout the world, she selfishly stole that money to buy extravagant houses, more than 80 vehicles and over 1,500 pieces of jewelry,” Esparza said.

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Defense attorney Albert Flores said Mello is deeply remorseful.

“She realizes she committed a crime, she did wrong and is very ashamed,” Flores said.

Flores said Mello has saved many things she bought with the money and hopes the items are sold to reimburse the government. “I don’t think the court gave us enough credit for that, but we can’t complain,” Flores said.

The defense has no plans to appeal, he said.

Prosecutors said Mello used the fake organization she created to apply for grants through the military program. She filled out more than 40 applications over six years, illegally receiving nearly $109 million, assistant U.S. Attorney Justin Simmons wrote in a court document asking for Mello to be sentenced to more than 19 years in prison.

Mello used the money to buy millions of dollars of real estate, clothing, high-end jewelry — including a $923,000 jewelry purchase on one day in 2022 — and 82 vehicles that included a Maserati, a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle.

Agents executing a search warrant in 2023 found many of the vehicles with dead batteries because they had not been operated in so long, Simmons wrote.

Prosecutors said Mello was able to steal so much because of her years of experience, expert knowledge of the grant program, and accumulated trust among her supervisors and co-workers.

“Mello’s penchant for extravagance is what brought her down,” said Lucy Tan, acting special agent in charge of the IRS Criminal Investigation’s field office in Houston.

A co-worker and friend of Mello’s, Denise Faison, defended Mello in a letter to the judge.

“Janet Mello is a good, kind, caring and loving person that would do no harm to anyone,” Faison wrote. “Janet has so much more to offer the world. Please allow her to repay her debt to society by returning what she has taken but not be behind prison bars.”