Judge rules against Janet Mello, Denies Pension While in Prison for $108 Million Theft from Army

A judge has denied a request from Janet Mello to keep her $4400 a month pension while she serves a 15 year prison sentence for stealing $108 Million from the army as reported by AlamogordoTownNews.org

Yamanaka Mello, the ex-civilian defense employee who ripped off nearly $109 million from the Army, will have to live without the bulk of her government pension while locked up.

At a hearing Tuesday in federal court in San Antonio, U.S. District Judge Xavier Rodriguezgranted prosecutors' request for the government to take 95% — or about $4,251 — of the $4,474.69 in monthly federal retirement benefits Mello receives from her 35-year career as a government employee. The money will be applied to the more than $140 million in restitution she was ordered to pay as part of her 15-year prison sentence.

Also at the hearing, Assistant U.S. Attorney Kristy Callahan told the judge that her office is still trying to recover $50 million that Mello stole.

Callahan had argued Mello, 58, shouldn't receive 95% of her pension while imprisoned given it's costing the government about $50,000 a year to incarcerate her.

"She's going to be in prison a long time," Rodriguez said to Mello's lawyer, Albert Flores. "Why does she need $4,400 per month in prison?"

"The answer is, she doesn't," Flores said.

The judge then granted Callahan's motion to take all but about $224 of Mello's monthly benefits. Mello will be able to use the 5% she's left with to pay for her commissary needs.

Mello fraudulently siphoned Army funds meant for youth development opportunities for military-connected children to her personal accounts, prosecutors said.

She was a financial program manager for the Army’s Installation Management Command, which is headquartered at Joint Base San Antonio-Fort Sam Houston. Mello worked in the G-9 Section that helps soldiers with recreation, morale and welfare services.

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