ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / ECONOMY & WORK

Civilian Working for US Military Demands Retirement Benefits After Pulling off $100 Million Scam

Alleged con-woman was accused of stealing millions in Army funds.
PUBLISHED MAR 10, 2024
Cover Image Source: Armed soldiers | Getty Images | Photo by Spencer Platt
Cover Image Source: Armed soldiers | Getty Images | Photo by Spencer Platt

Defence is a crucial sector that needs to be safeguarded from any kind of breach to ensure the safety of citizens. But in an incident that has shaken the US military establishment, a civilian financial program manager at Fort Sam Houston in San Antonio, Texas, has been accused of orchestrating a scam that amounts to a staggering $100 million. The accused, identified as Janet Yamanaka Mello, was responsible for determining the eligibility of organizations applying for the 4-H Military Partnership Grant, a program designed to offer youth development opportunities for military-connected children.

Image Source: Photo by Song Kyung-Seok - Pool | Getty Images
Image Source: Photo by Song Kyung-Seok - Pool | Getty Images

She allegedly orchestrated a complex scheme involving the creation of a fraudulent nonprofit organization named Child Health and Youth Lifelong Development. Through this sham entity, she purportedly submitted falsified paperwork to secure grant money.

The indictment asserts that Mello then diverted the funds to a UPS store mailbox she rented near San Antonio, subsequently depositing the money into her personal bank account. Prosecutors claim that she repeated this process over forty times during six years, accumulating a staggering $100 million for herself in the process.

One of the most egregious aspects of the alleged scam is the accusation that the 57-year-old army civilian forged her supervisor's digital signature to approve the illicit funds. This raises serious concerns about the internal controls and supervision within the military financial programs, prompting a closer examination of the safeguards in place to prevent such fraudulent activities.

Image Source: Photo by Song Kyung-Seok - Pool | Getty Images
Image Source: Photo by Song Kyung-Seok - Pool | Getty Images

The charges brought against Mello include five counts of mail fraud, four counts of engaging in a monetary transaction over $10,000 using criminally derived proceeds, and one count of aggravated identity theft. The Department of Justice (DOJ) is actively seeking to seize any property acquired through these illegal gains.

Mello's attorney, Albert Flores, has defended his client's right to retirement benefits, arguing that the allegations should not impact her ability to collect funds accrued over years of civil service. Flores contends that the army civilian earned her retirement benefits, implying a separation between her alleged criminal activities and her service record. 

Image Source: Photo by RDNE Stock project | Pexels
Image Source: Photo by RDNE Stock project | Pexels

"We expect a large portion of the assets will be recovered," Flores stated, pointing out that the government can potentially recoup money spent on tangible assets such as real estate, cash, vehicles, and other properties. Despite the gravity of the charges, the attorney appears optimistic about Mello's ability to retain some of her ill-gotten gains.

The lack of immediate responses from key entities, including the U.S. Attorney’s Office for the Western District of Texas and the Army, raises questions about the ongoing investigation and the potential broader implications of this case.

Pexels | Photo by Pixabay
Image Source: Pexels | Photo by Pixabay

This case prompts a broader conversation about the systems in place to prevent and detect financial fraud within government agencies, especially those handling substantial sums of public funds. As the legal proceedings unfold, the public will be closely watching to see how the justice system navigates a case of this magnitude. The outcome could have far-reaching implications for the military's financial management practices, forcing a reevaluation of existing safeguards.

MORE ON MARKET REALIST
The sharks did not expect the product to taste as good as it did, considering what it was made from.
4 hours ago
The designer was also commissioned by top brands and worked for the royal family.
5 hours ago
The host had a look of bewilderment on his face which was absolutely hilarious.
6 hours ago
Things did not seem to be going well for the entrepreneur due to her high energy.
9 hours ago
The guest might have had high expectations, but they were quickly brought down to earth.
10 hours ago
The contestant was unable to contain her excitement and hugged the model.
1 day ago
Two of the players got it right, and while the player who lost didn't mind, fans were not satisfied.
1 day ago
Lisa celebrated her birthday in style with a perfect two-card guess to win the big prize.
1 day ago
Rick Harrison did what he could to console the guest who said that he had lost faith in NASCAR.
1 day ago
Both the guest and the expert were fascinated by how well the automaton worked.
2 days ago
One of the entrepreneurs broke down in tears, explaining all the struggles they had to go through.
2 days ago
She couldn’t believe it when her doll was appraised at a five-figure sum, and laughed in disbelief.
2 days ago
Ken Jennings truly has embraced "Jeopardy!" in every way possible at this point.
2 days ago
The comedian was impressed by the simplicity of the product and amused by the pitch.
3 days ago
Harrison usually makes smart deals on the show, but this vintage car buy turned into a costly mistake.
3 days ago
Had she started the game in a better way, she might have won the five-figure prize money.
3 days ago
Barbara Corcoran made the exact same offer, and she wasn't happy about being rejected.
4 days ago
The guest believed that it was worth a modest amount of money, but that was clearly not the case.
4 days ago
With James Holzhauer in the lead, Amy Schneider and Andrew He decided to joke around.
4 days ago
Barbara Corcoran told the founders that she had never seen Greiner so passionate.
4 days ago