LUXURY ESTATE ON EASTERN SHORE FORFEITED BY CHAMPION GOV’T FRAUDSTER UP FOR AUCTION – Janet Mello used her boss’s auto-pen, got 15 years but can’t keep the 58 acre country estate; she’s trying to keep her federal pension too

ARMY CIVILIAN EMPLOYEE MADE USAID FRAUDSTERS LOOK LIKE PIKERS AS SHE FLEECED TAXPAYERS FOR $108 MILLION

BY KEN ROSSIGNOL
THE CHESAPEAKE TODAY

JANET MELLO USED HER SUPERVISOR’S AUTOPEN TO STEAL MILLIONS FROM ARMY PROGRAM

PRESTON, MD – The United States Government is having an auction of an Eastern Shore estate on July 25, 2025, in an attempt to recover some portion of the over $108 million that a civilian Army employee stole through an elaborate scheme, using the autopen signature of a supervisor.

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.

 The court documents in the federal trial of Janet Yamanaka Mello revealed that from December 2016 through August 2023, she directed grant funds from the 4-H Military Partnership Grant program to a fictitious business she had formed, Child Health and Youth Learning Development (CHYLD).  Prosecutors proved that she secured the funds through her position as a CYS financial program manager.

NOT JUST A LITTLE SUSPICIOUS?

The fifty-eight-acre property on the Eastern Shore of Maryland, located near Preston in Caroline County, was sold on August 9, 2023, to Mello and her husband Mark by David and Peggy Wilson, owners of significant commercial properties and automotive firms in Delmarva, for $3.1 million. It is hard to believe that a sophisticated business owner like the Wilsons didn’t Google their buyer and learn that she was a civilian employee of the Army. One can bet that they conducted more thorough background checks on used car buyers at Preston Ford.

THE SCHEME

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 roughly $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.

She had to give up 95 percent of her federal retirement and fought to keep more while she’s in the slammer…what was she going to spend on while in prison?

“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 who 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.”

 

ONLINE AUCTION

Auction Date and Time: Friday, July 25, 2025, from 12:00 – 2:00 pm ET

Inspections: Saturday, July 12 and 19, 10:00 am – 1:00 pm

Deposit: $200,000 cashier’s check or wired funds. Request wiring instructions here

Starting Bid: $1,000,000

Property Photo Gallery: View Here

Property Floor Plan: View Here

Auction Flyer: Download here

Terms of Sale: View here Wire deposit or cashiers check due by July 24.

Auction Details/2-Step Registration   Book an Appointment

ESTATE HOME 
Estate property with eight bedrooms, 8.8 baths, foyer with double staircase, kitchen with butler’s pantry, dining room, living room, two offices, family room, indoor grill room, 2nd floor family room, four fireplaces, gym, laundry room, and attached 3-car and 4-car garages. Over a detached garage is a 3-bedroom, 2-bath guest suite with a kitchen and living space. The estate includes an in-ground pool, patio with outdoor kitchen, fire pit, covered patio, and 2nd-floor balcony. The 58.48 ± acre property has 3 additional detached garages with lifts, half baths, and 2nd level spaces, a carport/open storage, a pond, and a circular driveway. Preston is in the Delmarva/Eastern Shore area. Note: Property has 3 parcels with separate addresses/taxes. Portions of all three parcels are currently leased for agricultural use until December 2025. Any further leasing of the property will be between the new owner and lessee. Aerial view showing tilled land can be viewed here. Crop lease can be viewed here. Irrigation System: The irrigation system on the property has a break in a mainline in an area under a garage which will be available for inspection during the open houses. This damage will not be fixed by the seller and will be the responsibility of the buyer to make any repairs. Quotes to repair and or reinstall water mainline will be available on site. Per the stated Terms of Sale, this property is sold AS IS WHERE IS WITH ALL FAULTS including any building violations for the building as a whole that may apply (including but not limited to fines and penalties). Clear Title will be transferred via a Government Deed.

ONLINE BIDDING All bidding occurs online at auctions.cwsmarketing.com and requires a 2-step registration process.