A Texas woman, Janet Yamanaka Mello, 57, was sentenced to 15 years in federal prison for embezzling nearly $109 million from a youth development program for military families. Mello, a financial manager at Fort Sam Houston, used the stolen funds to purchase multiple mansions, luxury cars, and designer accessories.
Fraudulent scheme
Mello pleaded guilty to five counts of mail fraud and five counts of filing false tax returns. Prosecutors revealed that she created a fake organization, Child Health and Youth Lifelong Development, to apply for grants, diverting funds meant for military children. US Attorney Jaime Esparza stated, “Janet Mello betrayed the trust of the government agency she served and repeatedly lied in an effort to enrich herself.”
Extravagant purchases
Mello’s extravagant purchases included over 80 vehicles, such as a Maserati, Mercedes, 1954 Corvette, and a Ferrari Fratelli motorcycle. She also bought $923,000 worth of jewelry in a single day in 2022. A search warrant in 2023 uncovered many of these vehicles with dead batteries due to prolonged inactivity.
Defense and remorse
Defense attorney Albert Flores described Mello as deeply remorseful, stating, “She realizes she committed a crime, she did wrong and is very ashamed.” Mello has saved many of the items purchased with the stolen money, hoping they will be sold to reimburse the government. Flores indicated that there are no plans to appeal the sentence.
Long-term deception
Mello’s scheme lasted over six years, during which she filled out more than 40 fraudulent grant applications. Her years of experience and trust within the grant program allowed her to steal such a significant amount. Acting special agent Lucy Tan remarked, “Mello’s penchant for extravagance is what brought her down.”
Despite her crimes, Mello received support from a co-worker, Denise Faison, who defended her 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. “Please allow her to repay her debt to society by returning what she has taken but not be behind prison bars.”