And a Texas woman who defrauded the military of more than $100 million has demanded that her military pension be maintained.
Janet Mello, 58, is serving a 15-year sentence for stealing $109 million from the Army where she worked as a financial manager.
Hello, known as “Goddess Gucci,” is currently fighting to keep her $4,475 monthly government pension while federal prosecutors try to seize those payments as restitution.
Prosecutors said she doesn't need 95 percent of her pension, which is about $50,000 a year, as long as the government covers the costs of keeping her in prison.
They propose that she keep just 5 percent of her benefits – about $224 a month for “her needs.”
Janet Mello, 58, is serving 15 years in prison for stealing $109 million from the military where she worked as a financial manager
“Mello unlawfully enriched herself by fraudulently diverting Army funds intended for significant youth development opportunities for military-connected children into her personal accounts, prosecutors said in court, as reported by the San Antonio Express News.
“Accordingly, the United States should compensate her monthly pension while bearing the costs of her imprisonment and seeking to recover the losses incurred.”
Mello retired from the military after a raid on her home in August 2023. An Army spokesman said the military is obligated by law to let her retire even though she is under federal investigation.
In 2016, Mello started a shell company and spent six years selling multiple McMansions, 82 supercars, motorcycles and flashy designer jewelry.
Mello with her husband outside the courthouse in July
With the stolen money, Mello bought several houses – including the one shown above
A San Antonio woman scammed money from a youth development program for children from military families to finance her extravagant lifestyle.
In March, she pleaded guilty to five counts of mail fraud and five counts of filing a tax return.
During a recent hearing in San Antonio, prosecutors detailed how Mello made lavish purchases in connection with the massive fraud, including spending $923,000 on jewelry in one day in 2022.
When she began stealing money in 2016, she was working as a civilian employee at Fort Sam Houston.
Mello was the chief financial officer who handled funding for the youth program at the military base and checked whether grant funds were available.
Prosecutors say she created a fraudulent group called Child Health and Youth Lifelong Development.
U.S. Attorney Jaime Esparza said Mello “betrayed the trust of the government agency she served and repeatedly lied in an attempt to enrich herself.”
Prosecutors detailed how Mello made lavish purchases in a massive six-year scam, including spending $923,000 on jewelry in one day in 2022.
Mello used the money to purchase multimillion-dollar real estate, clothing, high-end jewelry and 82 vehicles, including a Maserati (pictured), a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle
“Instead of $109 million in federal funds intended to care for military children around the world, she selfishly stole that money to buy extravagant homes, over 80 vehicles and over 1,500 pieces of jewelry,” Esparza told the court.
Defense attorney Albert Flores responded that Mello was deeply remorseful. “She realizes she committed a crime, she did something wrong and she is very ashamed,” he said.
Flores added that Mello saved many of the things she bought with the money and hopes they will be sold to repay the government.
Prosecutors said Mello used a fake organization she created to apply for grants under the military program.
Prosecutors said Mello used a fake organization she created to apply for grants under the military program. (In the photo: Mello with her husband in front of the courthouse)
Mello embezzled money from a youth development program for children from military families and used it to finance her extravagant lifestyle, including several mansions (one pictured)
She completed more than 40 applications over six years, illegally receiving nearly $109 million, Assistant U.S. Attorney Justin Simmons wrote in a court document seeking more than 19 years in prison for Mello.
Mello used the money to purchase multimillion-dollar real estate, clothing, high-end jewelry and 82 vehicles, including a Maserati, a Mercedes, a 1954 Corvette and a Ferrari Fratelli motorcycle.
Agents executing a search warrant 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, specialized knowledge of the grant program and accumulated trust among her superiors and co-workers.
“Mello's penchant for extravagance led to her downfall,” said Lucy Tan, acting special agent in charge of the IRS Criminal Investigation Houston Field Office.
