Con artist accused of stealing $100M from Army allowed to retire with full benefits: ‘I earned it’

A con artist who is accused of defrauding the US Army out of $100 million has been given the green light to retire with full benefits.

Janet Yamanaka Mello, 57, who is currently under criminal investigation, brazenly claims she “earned” her civil servant retirement package despite allegedly using the funds to purchase over 30 homes, luxury cars, and jewelry through the seven-year-long scheme.

The military admitted that there is nothing that can be done to withhold Mello’s benefits from her as it’s 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.

“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 that Mello’s case will be resolved quickly, as she’s been “very cooperative” in turning over assets.

He said that she will likely sell some of her luxe possessions to reimburse officials.

Mello, who worked as a civilian financial program manager at Joint Base San Antonio-Fort Sam Houston, hatched a plan in 2016 to create a business titled “Child Health and Youth Lifelong Development” so she would 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 (IRS) 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 (FERS), which includes a basic benefit plan, social security, and a savings plan.

In a press release issued in Dec. 2023, 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.”

The alleged fraudster began her scamming in 2016 when she created the bogus business called “Child Health and Youth Lifelong Development (CHYLD).”

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.

Mello purchased 31 different real estate properties in Colorado, Maryland, New Mexico, Texas, and Washington.

Along with the massive amount of real estate she was buying, Mello also splurged and purchased at least 80 vehicles.

Authorities also seized over $18 million in cash from six different accounts connected to Mello.

Mello 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 Jan. 19 deadline on whether Mello strikes a plea deal or faces a jury selection and trial on Feb. 12.

If found guilty, Mello faces a maximum prison sentence of 142 years.