Kathrine Frich
The fraud was conducted under the guise of a program called “Child Health and Youth Development.”
A Texas woman, Janet Yamanaka Mello, has been sentenced to 15 years in prison after being convicted of embezzling over $100 million from U.S. military funds.
An Extravagant Lifestyle
Mello, a civilian employee at Fort Sam Houston, orchestrated a sophisticated fraud scheme over six years, diverting money intended for children’s programs into her personal accounts, according to Ziare.
Mello’s extravagant lifestyle, which included the purchase of more than 80 cars, 1,500 pieces of jewelry, and multiple properties, raised suspicions and eventually led to her downfall. Investigators discovered that her reported income was significantly lower than the lavish lifestyle she was leading.
“Her appetite for extravagance was her undoing. As we uncovered more details, the extent of the criminal scheme and the financial scale of her expenditures became clear,” said Special Investigator Lucy Tan.
Child Health and Youth Development
The fraud was conducted under the guise of a program called “Child Health and Youth Development.” Between 2016 and 2023, Mello approved 49 fraudulent grants, amounting to $108,917,749.
The funds, which were supposed to support youth programs, were instead funneled into Mello’s personal expenses. To conceal her activities, she filed false tax returns, further complicating the investigation.
Mello, now 57, was found guilty of fraud and submitting false tax statements. The severity of her sentence reflects the large scale and duration of her crime, as well as the betrayal of trust involved in her position within the military’s support services for children and youth.