Streamlining Procurement for Effective Execution and Delivery and National Defense Authorization Act for Fiscal Year 2026
Floor Speech
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Mr. ROSE. Mr. Chairman, I yield myself such time as I may consume.
Mr. Chair, I rise in support of my amendment to H.R. 3838, Streamlining Procurement for Effective Execution of Delivery and the National Defense Authorization Act for Fiscal Year 2026.
My amendment is intended to address the Janet Mello fraud case, the Army civilian who was indicted and pleaded guilty to stealing over $100 million that were intended for the 4-H Military Partnership Grant Program.
The 4-H Military Partnership Grant Program serves 4-H clubs that are in many military installation youth centers. These programs include 4-H positive youth development programming, engaging in hands-on learning in day and overnight summer camps, including military team adventure camps.
We, as a nation, ask so much of our military families. Frequent moves can be especially difficult for children. However, the 4-H Military Partnership Grant Program can serve as a lifeline to military families by providing continuity, as it is often the case that a family can move from one installation to another and maintain active participation in 4-H programs because they are located at so many military installations.
Janet Mello ruthlessly plundered more than $100 million from this program meant to support the children of our military heroes. This calculated betrayal was not only a staggering act of theft but a cruel assault on the very families who sacrifice the most for our Nation's freedom. By draining critical resources, she robbed military children of the opportunities and security promised through 4-H.
The American people deserve answers, and they deserve to know how such a monumental fraud was allowed to fester in the shadows for so long. My amendment requires a report on how this fraud was missed, what red flags were ignored, and what fixes are needed to prevent this from ever happening again.
The House passed my amendment last Congress. Unfortunately, it was not included in the final bill. I am proud to reintroduce this amendment again this Congress with slightly adjusted reporting requirements.
I also note for my colleagues that my office sought and received technical assistance on this amendment from the Office of the Secretary of Defense Comptroller.
Mr. Chairman, I include in the Record a press release from the Department of Justice describing this fraud in greater detail. [From US Attorney's Office, Western District of Texas, July 23, 2024] Former Army Civilian Employee Sentenced to 15 Years in Federal Prison for $100 Million Fraud Scheme
San Antonio--Janet Yamanaka Mello, the civilian Army employee who stole over $108 million from a grant program designed to provide services to military dependents and their families was sentenced today to 180 months in prison for five counts of mail fraud and five counts of filing a false tax return.
According to court documents, Janet Yamanaka Mello, 57, worked as a financial program manager for the U.S. Army, Installation Management Command--G9 (Morale, Welfare and Recreation) Child and Youth Services (CYS) at Fort Sam Houston. In or around December 2016 through at least August 29, 2023, Mello formed a business she called Child Health and Youth Lifelong Development (CHYLD). The sole purpose of CHYLD was to receive grant funds from the 4-H Military Partnership Grant program, which Mello fraudulently secured by way of her position as a CYS financial program manager.
Once Mello received a grant check, she deposited the check into her bank account, spending the money on clothing, jewelry, vehicles and real estate. Court documents indicate that Mello repeated the process 49 times during a six-year period, requesting approximately $117,000,000 in payments, and receiving approximately $108,917,749.
Subsequently, Mello failed to accurately report her income for tax years 2017, 2019, 2020, 2021 and 2022, omitting millions of dollars in income fraudulently received through CHYLD.
``Janet Mello betrayed the trust of the government agency she served and repeatedly lied in an effort to enrich herself,'' said U.S. Attorney Jaime Esparza for the Western District of Texas. ``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. Her actions reflect exactly the opposite of what it means to serve your country, and my office will continue to work tirelessly to prosecute those who illegally seek personal gain at the expense of their fellow citizens.''
``Corruption and fraud in U.S. Army programs jeopardize the safety and security of our Soldiers and their families. When discovered, fraudulent activities by Army employees will not be tolerated, and those involved will be brought to justice,'' said Special Agent in Charge Maria Thomas for the Department of the Army Criminal Investigation Division, Central Texas Field Office. ``The Army community, and the public, can rest assured that we remain committed to aggressively pursuing anyone that uses government programs for their own personal gain.''
``Mello's penchant for extravagance is what brought her down. We identified that her reported income was well below the lavish lifestyle she lived. As we uncovered the details, the criminal scheme grew, the dollar amount grew, and the reach of her spending grew,'' said Acting Special Agent in Charge Lucy Tan of IRS Criminal Investigation's Houston Field Office. ``Financial crimes have victims, and this one took opportunities away from the children and families of our military men and women.''
CI and Army CID investigated the case.
Assistant U.S. Attorneys Justin Simmons, Antonio Franco, Kristy Callahan, Todd Keagle, and Steven Seward prosecuted the case.
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Mr. ROSE. Mr. Chairman, I yield myself the balance of my time.
Mr. Chair, in closing, I thank Congressman Fulcher for cosponsoring this amendment, and I urge my colleagues to join me in supporting accountability by ensuring that we get answers to how this fraud was able to steal from military families and taxpayers undetected from 2016 through 2023.
Mr. Chair, I urge Members to vote ``yes'' on my amendment, and I yield back the balance of my time.
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Mr. ROSE. Mr. Chair, I demand a recorded vote.
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