(Image: KSAT)
A former civilian employee of the U.S. Army, Janet Yamanaka Mello, 57, was sentenced to 15 years in federal prison in San Antonio for embezzling nearly $109 million over seven years. Mello, who worked as a financial program manager at Fort Sam Houston, pleaded guilty in March to charges of mail fraud and filing false tax returns.
The scheme involved the creation of a fake organization called Child Health and Youth Lifelong Development (CHYLD), which Mello used to submit fraudulent invoices for services that were never provided. The stolen funds were used to purchase luxury items, including real estate, cars, motorcycles, jewelry, and designer accessories. Her lavish spending earned her the nickname "Gucci Goddess" among delivery drivers who frequently brought packages to her North Side home.
U.S. District Judge Xavier Rodriguez sentenced Mello and ordered her to pay more than $108 million in restitution to the Army and nearly $32 million to the IRS. Despite her claims of being overworked and underpaid, Mello apologized for her actions, acknowledging the damage to her reputation.
Mello's husband, Mark Mello, was also implicated in enjoying the stolen funds but was not charged. The IRS and Army investigators began scrutinizing Mello's activities after identifying discrepancies in her tax filings. Their investigation led to a raid on her home in August 2023, where many luxury items were seized.
Between 2016 and 2023, Mello managed to obtain approximately $117 million in payments through her fraudulent activities. As part of her plea agreement, she forfeited ownership of over 30 properties in five states, 80 vehicles, and expensive jewelry, along with $18 million spread across six bank accounts.
The case highlights the extensive trust and autonomy Mello had in her role, which she exploited for personal gain. Her downfall was marked by her extravagant purchases, which drew the attention of authorities. Despite a supportive letter from a colleague describing her as a kind and caring person, the court upheld the somewhat significant prison sentence to reflect the gravity of her crimes.
Unbelievable that her husband wasn't charged along with her! "Mello apologized for her actions, acknowledging the damage to her reputation." What about the damage she did to the thousands of military families these funds were intended for? Extraordinarily selfish individual, throw away the key!