No Halo News · Sourced development
Court sentences 2nd Milk founders after guilty pleas in donor-fraud case
A federal judge sentenced 2nd Milk founder Jason Carney to 192 months in prison after he pleaded guilty to conspiracy to commit wire fraud, filing false personal and nonprofit tax returns, and structuring transactions. Lacey Carney received 36 months after pleading guilty to knowing about the wire-fraud scheme and failing to report it. The Justice Department said the court found that Jason Carney diverted more than $2 million from the charity and that the couple agreed to forfeit their home.
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 sentencing converts earlier fraud allegations into convictions and court-imposed punishment. It directly contradicts representations that donated money went to children rather than the founders' personal expenses.
Attribution
Who reported or established this
The U.S. Attorney's Office reported the guilty pleas, sentences and court finding, citing the criminal case and financial investigation.
Evidence limits
What remains unverified
No Halo has not independently reviewed the complete sentencing record, calculated final restitution or recovery for donors, or established how much money may ultimately reach the charity's intended beneficiaries.
Right of reply
Organization response
Jason Carney pleaded guilty during his trial, and Lacey Carney pleaded guilty to failing to report the scheme. No separate current response from 2nd Milk was located in the consulted material.
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 16, 2026. See an error or a later outcome? Submit a correction or right of reply.