No Halo News · Sourced development
Federal court sentenced 2nd Milk founders after guilty pleas in charity and tax fraud case
The U.S. Attorney’s Office reported that Jason Carney was sentenced to 192 months in prison after admitting conspiracy, wire-fraud-related, tax and transaction-structuring offenses involving 2nd Milk. Lacey Carney received 36 months after pleading guilty to concealing her husband’s fraud. The court found that Jason Carney diverted more than $2 million from the charity, according to DOJ.
Status matters. This page records a sourced development, not a completed No Halo investigation. An allegation is not a finding. Dismissals, settlements, judgments, corrections and final outcomes remain distinct.
Donor relevance
Why this matters
The sentences resolve a major misuse case involving funds donors believed would support malnourished and orphaned infants. The court also ordered forfeiture of the couple’s home because fraud proceeds had been applied to its mortgage.
Attribution
Who reported or established this
The findings and sentencing information were announced by the U.S. Attorney’s Office and attributed to the federal court, prosecutors, IRS Criminal Investigation and the defendants’ guilty pleas.
Evidence limits
What remains unverified
No Halo has not independently reconstructed all donations, expenditures, victim losses or overseas program activity, and has not established the charity’s current operating status.
Right of reply
Organization response
No separate response from 2nd Milk was located in the consulted material. DOJ reported that both founders entered guilty pleas.
Classification
How No Halo records this event
Event type: Conviction. Current state: Resolved. No Halo preserves the current procedural state rather than treating every mention as a finding.
Published October 14, 2026 · Last verified October 18, 2026. See an error or a later outcome? Submit a correction or right of reply.