San Antonio Standard

SAN ANTONIO – Janet Yamanaka Mello, a former civilian Army employee, was sentenced today to 15 years in federal prison for her involvement in a fraud scheme that embezzled over $108 million from a grant program meant to provide services to military dependents and their families.

According to court documents, Mello, 57, served as a financial program manager for the U.S. Army's Installation Management Command – G9 (Morale, Welfare and Recreation) Child and Youth Services (CYS) at Fort Sam Houston. From December 2016 through August 29, 2023, she established a business named Child Health and Youth Lifelong Development (CHYLD). CHYLD was created solely to receive funds from the 4-H Military Partnership Grant program, which Mello fraudulently obtained through her position.

Mello deposited these grant checks into her bank account and used the funds on personal expenses such as clothing, jewelry, vehicles, and real estate. Court records reveal that she repeated this process 49 times over six years, requesting approximately $117 million in payments and receiving around $108.9 million.

Additionally, Mello failed to accurately report her income on tax returns for the years 2017, 2019, 2020, 2021, and 2022 by omitting millions of dollars received through CHYLD.

“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. Her actions reflect exactly the opposite of what it means to serve your country.”

“Corruption and fraud in U.S. Army programs jeopardize the safety and security of our Soldiers and their families," said Special Agent in Charge Maria Thomas for the Department of the Army Criminal Investigation Division’s Central Texas Field Office. "When discovered, fraudulent activities by Army employees will not be tolerated."

"Mello's penchant for extravagance is what brought her down," said Acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation's Houston Field Office. "Financial crimes have victims; this one took opportunities away from the children and families of our military men and women."

The case was investigated by CI and Army CID.

Assistant U.S. Attorneys Justin Simmons, Antonio Franco, Kristy Callahan, Todd Keagle, and Steven Seward prosecuted the case.

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