ARMY ON HOOK FOR ‘CROOK’
Retire benefits after ‘$100M con’
An alleged con artist accused of defrauding the Army out of $100 million has been given the green light to retire with full benefits.
Janet Yamanaka Mello, 57, who is under criminal investigation, brazenly claims she “earned” her civil service retirement package despite allegedly using military funds to purchase luxury cars, 31 homes and jewelry throughout the seven-year scheme.
The Army admitted that there is nothing that can be done to withhold Mello’s benefits as they’re protected under a federal law that was held up in government bureaucracy.
“The command has no authority to impact Ms. Mello’s retirement,” an Army spokesperson told the San Antonio Express-News.
‘She earned it’
“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.”
Albert Flores, Mello’s attorney, told the outlet that his client “earned” her retirement benefits.
“She earned it. I don’t see how one thing is related to the other,” he said of the ongoing criminal investigation.
Flores said Mello’s case will be resolved quickly, as she’s been “very cooperative” in turning over assets. He said she will likely sell some of her possessions to reimburse officials.
Mello, who worked as a civilian financial program manager at Joint Base San Antonio-Fort Sam Houston, is accused of hatching a plan in 2016 to create a bogus business called Child Health and Youth Lifelong Development so she could siphon funds she received from the Army to herself.
Most recently, she’s raked in $130,000 per year at her role.
The Internal Revenue Service flagged Mello’s suspicious business when she included it on her personal tax returns in 2017.
Still, her retirement plan is covered by the Federal Employee Retirement Service, which includes a basic benefit plan, Social Security and a savings plan.
In a press release issued in December, the Department of Justice said 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.”
Mello claimed her business provided services to military members and their families through the 4-H program, but instead just funded a lavish lifestyle for herself, authorities say.
Is she for ‘real’?
She purchased 31 real properties in Colorado, Maryland, New Mexico, Texas and Washington.
Along with the massive amount of real estate she was buying, Mello splurged and purchased at least 80 vehicles.
Authorities have seized over $18 million in cash from six different accounts connected to Mello.
She was arrested in December and 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 was released without bail and the US District Court for the Western District of Texas awaits a decision on whether Mello strikes a plea deal or faces jury selection and trial on Feb. 12.
If found guilty, Mello faces a maximum sentence of 142 years behind bars.