Despite being the subject of a criminal investigation, Janet Yamanaka Mello, a 57-year-old who is accused of cheating the US Army of $100 million, is scheduled to retire with full benefits. Mello has maintained her claim to her civil service retirement benefits in spite of claims that during a seven-year period, she utilized the embezzled money to purchase over thirty residences, expensive cars, and jewelry.
The Army has admitted that because of protections provided by federal law, they are unable to deny Mello his retirement payments. According to an Army spokesman, the leadership is powerless to stop Mello from retiring. Annuities or retired pay are only legally debatable in situations of treason, revolt, or insurrection convictions; no statute allows for a rejection based on any other offense.
Mello’s lawyer, Albert Flores, has maintained his client’s entitlement to the benefits, claiming that she earned them and that the ongoing investigation had nothing to do with her retirement. He said that Mello has complied with authorities by turning over assets, and it’s possible that she would sell some of her ostentatious belongings to pay them back.
Mello, a civilian finance program manager at Joint Base San Antonio-Fort Sam Houston, is accused of coming up with a scheme in 2016 to set up a fictitious company called Child Health and Youth Lifelong Development so that she could use Army funds for personal use. Her yearly income at the time of the finding was $130,000.
When Mello listed her business on her personal tax returns in 2017, the Internal Revenue Service raised a red flag. Her retirement plan, however, is under the Federal Employee Retirement Service, which offers Social Security, a savings plan, and a basic income plan.
The Department of Justice said in a statement issued in December 2023 that Mello had submitted false papers to the Army in order to steal over $100 million. Her company advertised that it offered 4-H program services to military personnel and their families, but in reality, it was just a means of supporting her opulent lifestyle.
Mello bought at least 80 cars and 31 houses spread across multiple states. More than $18 million in cash was also taken from accounts connected to her by the authorities. She is accused of mail fraud, aggravated identity theft, and using funds obtained through illegal means in financial transactions.
Mello was taken into custody in December and then freed on no bond. On February 12, the US District Court for the Western District of Texas is expecting word on whether she will enter a plea agreement or proceed with a trial. Mello could receive a maximum prison sentence of 142 years if found guilty.