Texas woman who scammed the US Army out of more than $100M sentenced, looks devastated outside court

A Texas woman who scammed military families out of more than $100million in one of the biggest fraud cases the US Army has ever seen has been sentenced to 15 years in jail.

Janet Mello created a shell company in 2016 before splashing out on multiple mansions, 82 supercars, motorcycles and flashy designer jewelry over six years.

The 57-year-old San Antonio native swindled money from a youth development program for children in military families to fund her extravagant lifestyle. 

Mello pleaded guilty in March to five counts of mail fraud and five counts of filing a tax return. She was sentenced by US District Judge Xavier Rodriguez on Tuesday.

The conman looked stony faced with her gaze fixed on the floor as she marched toward the courtroom hand-in-hand with her biker husband before they learned her fate.

They both wore all-black outfits - Mello with reading glasses and her bearded partner with dark RayBan sunshades. 

During the final hearing in San Antonio, prosecutors detailed how 'Gucci goddess' Mello made lavish purchases over the mammoth fraud, including spending $923,000 on jewelry in a single day in 2022.

She had been working as a civilian employee at Fort Sam Houston when she began stealing money in 2016. 

Mello was a financial manager who handled funding for 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.

US Attorney Jaime Esparza said Mello 'betrayed the trust of the government agency she served and repeatedly lied in an effort to enrich herself'.

'Rather than $109 million in federal funds going to the care of military children throughout the world, she selfishly stole that money to buy extravagant houses, more than 80 vehicles and over 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 wrong and is very ashamed,' he said.

Flores added Mello has saved many things she bought with the money and hopes the items are sold to reimburse the government. 

Prosecutors said Mello used the fake organization she created to apply for grants through the military program. 

She filled out more than 40 applications over six years, illegally receiving nearly $109 million, assistant US Attorney Justin Simmons wrote in a court document asking for Mello to be sentenced to more than 19 years in prison.

Mello used the money to buy millions of dollars of real estate, clothing, high-end jewelry and 82 vehicles that included a Maserati, a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle.

Agents executing a search warrant in 2023 found many of the vehicles with dead batteries because they had not been operated in so long, Simmons wrote.

Prosecutors said Mello was able to steal so much because of her years of experience, expert knowledge of the grant program, and accumulated trust among her supervisors and co-workers.

'Mello's penchant for extravagance is what brought her down,' said Lucy Tan, acting special agent in charge of the IRS Criminal Investigation's field office in Houston.

A co-worker and friend of Mello's, Denise Faison, defended Mello in a letter to the judge.

'Janet Mello is a good, kind, caring and loving person that would do no harm to anyone,' Faison wrote. 

'Janet has so much more to offer the world. Please allow her to repay her debt to society by returning what she has taken but not be behind prison bars.'

Mello's attorney said she does not plan to appeal the sentence.