The woman who scammed $108 million from the US Army to fund her lavish lifestyle, owning 31 homes and 70 vehicles, has agreed to plead guilty to fraud.
Janet Yamanaka Mello, 57, is accused of embezzling millions of dollars from military funds and spending it on jewelry, clothing, luxury vehicles, and real estate in one of the largest fraud cases the military has encountered.
The individual was employed by the US Army at Fort Sam Houston in San Antonio, Texas, serving as a CYS Financial Program Manager.
It is alleged that in 2016, they established a shell company named Child Health and Youth Lifelong Development.
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She allegedly misused funds intended for the children of army personnel to support her extravagant lifestyle.
According to the charges, Mello could potentially receive a maximum sentence of 125 years in prison. There have been no reports of any potential plea agreement at this time.
Her plan unraveled in January when IRS and army investigators collaborated to piece together the puzzle, leading to Mello’s criminal indictment in December 2023.
Currently, Mello intends to admit guilt to fraud and tax charges, with plea documents signed by the hustler set to be filed late on Wednesday.
The documents state that the accused individual embezzled $108 million in under seven years through her fraudulent business.
An official document filed with the plea deal accuses Mello of five counts of mail fraud and five counts of filing a false tax return.
If convicted, she could face a maximum of 20 years in prison for each count of mail fraud and up to five years for each count of tax fraud.
The plea hearing for Mello in San Antonio federal court has not been scheduled yet.
The individual was able to amass 80 vehicles and 31 properties across five states, with federal prosecutors claiming that she lived a lavish lifestyle far beyond what her $130,000 a year government salary could afford.
In 2017, her company CHYLD made a profit of $483 on revenue of $2,152 from training consultations. However, she has not submitted any tax returns since then.
Fraud Allegations: $100M Gain, Luxury Purchases, and Real Estate Scandal
Allegations suggest that she frequently submitted false documents and funneled grants into a fictitious company, resulting in over $100,000,000 in personal gain from 40 transactions.
According to transaction details, she reportedly wire transferred $264,874 from the account to purchase a 2023 Land Rover Range Rover last year.
She transferred $3,308,157 to buy real estate in Canyon Lake, Texas, according to documents.
A list of 78 luxury cars and motorbikes owned by Mello has been provided by the court, with a request for the assets in a bill of forfeiture.
There are a variety of high-end vehicles such as Maseratis, Ferraris, Aston Martins, Mercedes, Teslas, Harley-Davidsons, and Land Rovers.
In addition to her vehicles, they have identified 31 of her actual properties.
These properties are spread across multiple states, including mansions valued at over $3 million, ranches, vast farmland, and luxurious high-rise apartments and condos.
Mello had acquired a collection of properties in Texas, Maryland, Colorado, Washington, and New Mexico – allegedly purchased with fraudulent funds, according to prosecutors.
According to the documents, Mello reportedly has six bank accounts, each holding at least $32,000.
The IRS noticed that her extravagant lifestyle, which included purchasing million-dollar homes several times a year, was not in line with her salary.
