In a significant development today, a federal grand jury in San Antonio has issued an indictment against Janet Yamanaka Mello, a 57-year-old woman from San Antonio, on charges related to an alleged fraud scheme during her tenure as a civilian financial program manager at Fort Sam Houston.

Court documents reveal that Mello is accused of orchestrating a fraud scheme resulting in the misappropriation of over $100 million in Army funds. The indictment contends that Mello consistently submitted fraudulent paperwork, falsely indicating that her entity, Child Health and Youth Lifelong Development (CHYLD), was entitled to Army funds. Despite claiming to provide services to military members and their families, CHYLD is alleged to have provided no such services. Instead, Mello purportedly utilized the funds for personal gain, acquiring millions of dollars worth of jewelry, clothing, vehicles, and real estate. Furthermore, the indictment alleges that Mello forged the digital signature of one of her supervisors on multiple occasions.

The charges against Mello include 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. Her initial court appearance is scheduled for December 14 before U.S. Magistrate Judge Henry J. Bemporad of the U.S. District Court for the Western District of Texas. If convicted, Mello could face a maximum penalty of 20 years in prison for each fraud charge, up to 10 years in prison for each spending statute charge, and a mandatory minimum of two years in prison for the aggravated identity theft charge. The indictment also includes a notice of forfeiture for the proceeds and property obtained through the alleged criminal conduct.

U.S. Attorney Jaime Esparza of the Western District of Texas announced the charges. The investigation is being conducted by the IRS Criminal Investigation and the Department of the Army Criminal Investigation Division.