US Army Contractor Allegedly Stole $100 Million from Military Families

A civilian contractor for the US Army, Janet Yamanaka Mello, 57, has been charged with embezzling over $100 million intended for military families' children. She allegedly used this money to purchase cars and real estate. 

Mello pleaded not guilty to 10 charges, including mail fraud, criminal handling of money, and aggravated identity theft, on Wednesday. She is facing up to 142 years in prison if convicted.

Authorities claim that Mello's fraudulent activities, which spanned seven years, went undetected at Fort Sam Houston. Her responsibilities included allocating funds for a grant program supporting civilian partners. 

In 2016, she reportedly established a fictitious non-profit, Child Health and Youth Lifelong Development (CHYLD), and redirected funds to this entity over 40 times in six years. However, it is alleged that CHYLD did not provide any services, and Mello instead pocketed more than $100 million.

Media reports suggest Mello leveraged relationships with co-workers and supervisors for her scheme, even forging a supervisor’s signature for transaction approvals. The indictment reveals she spent the stolen funds on luxury jewelry, 78 vehicles (including classic cars and motorcycles), and 31 properties across various states.

One notable property, located in Preston, Maryland, features an infinity pool, three garages capable of holding 55 cars, and 16 bathrooms. It was sold for $3.1 million in August. 

Most of her properties, spread across Texas, New Mexico, and Washington State, are valued at over $1 million. Her vehicle collection includes a 1967 Chevrolet Camaro SS and a 1954 Chevrolet Corvette.

The government is currently seizing these properties and vehicles. Mello also has over $18 million in six bank accounts. She faces a jury trial and selection by January 19, according to court documents, unless a plea deal is reached with prosecutors.