OAN’s James Meyers
2:33 PM – Monday, January 29, 2024
A civil service worker who was accused of defrauding the U.S. Army out of $100 million was granted the right to retire with full benefits.
57-year-old Janet Yamanaka Mello, who is currently under criminal investigation, claims that she earned her retirement package after purportedly using the funds to purchase more than 30 homes, luxurious items, and high-end jewelry during a seven-year scheme.
However, a spokesperson for the U.S. military admitted that they cannot take back the con artist’s benefits as they’re protected under a federal law that was held up in a government bureaucracy.
“The command has no authority to impact Ms. Mello’s retirement,” an Army spokesperson told the San Antonio Express-News.
“In accordance with 5 U.S. Code Section 8312, an individual may be denied an annuity or retired pay on the basis of the service of the individual, if the individual is convicted of treason, rebellion or insurrection, or other similar offenses. There is no similar statutory authority for denying retired pay based on a conviction of other offenses.”
The civil service worker allegedly created a cover business in 2016 called Child Health and Youth Lifelong Development, which allowed her to siphon funds that she received from the U.S. Army to herself.
Meanwhile, the 57-year-old was also bringing in $130,000 annually in her job role.
The discovery of the plan began when the Internal Revenue Service (IRS) flagged Mello’s phony business when she began including it on her tax returns in 2017.
The Department of Justice issued a press release in December 2023, saying Mello “allegedly stole more than $100 million in Army funds by regularly submitting fraudulent paperwork that indicated an entity she controlled was entitled to receive funds from the Army.”
In response to the claims, Mello said her business was “to provide services to military members and their families through the 4-H program,” but she instead used the funds to create her own lavish lifestyle.
Additionally, Mello purchased 31 properties in several states such as Maryland, Texas, and Washington. She also purchased over 80 luxurious vehicles.
Furthermore, authorities confiscated over $18 million in cash from six different bank accounts connected to the 57-year-old.
Mello was arrested last December and was charged with 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.
She pleaded not guilty and is set to return to court in February. If found guilty, Mello will face a maximum prison sentence of 142 years.
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