A Texas woman who defrauded military families of more than $100 million in one of the largest fraud cases the U.S. military has ever seen has been sentenced to 15 years in prison.
Janet Mello set up a shell company in 2016 and proceeded to spend a fortune over the course of six years on multiple mansions, 82 supercars, motorcycles and flashy designer jewelry.
The 57-year-old San Antonio resident embezzled money from a youth development program for children from military families to fund her extravagant lifestyle.
Mello pleaded guilty in March to five counts of mail fraud and five counts of fraudulent tax filings. She was sentenced Tuesday by U.S. District Judge Xavier Rodriguez.
The con artist looked icy and with her gaze fixed on the ground as she walked hand in hand with her biker husband into the courtroom before they learned her fate.
Janet Mello, the Texas woman who defrauded the U.S. military of more than $100 million, has been sentenced to 15 years in prison. (Pictured: Mello with her husband outside the courthouse)
Mello embezzled money from a youth development program for children in military families and used it to fund her extravagant lifestyle — including several mansions (one pictured)
The 57-year-old San Antonio resident set up a shell company in 2016 before splashing out on multiple McMansions, 83 supercars and flashy designer jewelry (pictured)
They both wore all-black outfits: Mello with reading glasses and her bearded partner with dark RayBan sunglasses.
During the latest hearing in San Antonio, prosecutors detailed how “Gucci goddess” Mello made extravagant purchases as part of the massive fraud, including spending $923,000 on jewelry in a single day in 2022.
She was working as a civilian at Fort Sam Houston when she started stealing money in 2016.
Mello was the financial manager and arranged the financing of a youth program at the military base and determined whether grant money was available.
She created a fraudulent group called Child Health and Youth Lifelong Development, prosecutors said.
According to US Attorney Jaime Esparza, Mello “betrayed the trust of the government agency she served and repeatedly lied in an attempt to enrich herself.”
Mello used the money to buy millions of dollars worth of real estate, clothing, luxury jewelry and 82 vehicles, including a Maserati (pictured), a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle
Mello bought several houses with the stolen money, including the house pictured above
Prosecutors detailed how Mello made extravagant purchases in a massive six-year scam, including spending $923,000 on jewelry in a single day in 2022
“Instead of $109 million in federal funds going to the care of military children around the world, she selfishly stole that money to purchase extravagant homes, more than 80 vehicles and more than 1,500 pieces of jewelry,” Esparza told the court.
Defense attorney Albert Flores countered that Mello is deeply remorseful. “She realizes she committed a crime, she did something wrong, and she is deeply ashamed,” he said.
Flores added that Mello has kept many of the things she bought with the money and hopes the items will be sold to pay back the government.
Prosecutors say Mello used the fake organization she created to apply for grants through the military program.
She filed more than 40 applications over six years and illegally received nearly $109 million, Assistant U.S. Attorney Justin Simmons wrote in a court document asking that Mello be sentenced to more than 19 years in prison.
Mello used the money to buy millions of dollars worth of real estate, clothing, luxury jewelry and 82 vehicles, including a Maserati, a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle.
Prosecutors detailed how Mello made extravagant purchases in a massive six-year scam, including spending $923,000 on jewelry in a single day in 2022
Prosecutors say Mello used the fake organization she created to apply for grants through the military program. (Pictured: Mello with her husband outside the courthouse)
Officers conducting a search in 2023 found many vehicles with dead batteries because they had not been used for so long, Simmons wrote.
Prosecutors said Mello was able to steal so much because of her years of experience, her expert knowledge of the grant program and the trust she had built up with her supervisors and colleagues.
“Mello’s penchant for extravagance was what brought her down,” said Lucy Tan, acting special agent in charge of the IRS Criminal Investigation field office in Houston.
A colleague and friend of Mello, Denise Faison, defended Mello in a letter to the judge.
“Janet Mello is a good, kind, caring and loving person who would never harm anyone,” Faison wrote.
“Janet has so much more to offer the world. Please let her repay her debt to society by giving back what she took, but not behind bars.”
Mello’s attorney said she does not plan to appeal the sentence.
