No Halo News · Sourced development
Federal judge sentences 2nd Milk founders after guilty pleas in donor-fraud case
A federal judge sentenced 2nd Milk founder Jason Carney to 16 years in prison and Lacey Carney to three years on October 14. Jason Carney had pleaded guilty to conspiracy to commit wire fraud, filing false tax returns and structuring transactions to avoid reporting requirements. Lacey Carney had pleaded guilty to concealing information about the wire-fraud crime. The Justice Department said the court found that Jason Carney diverted more than $2 million from a charity created to help malnourished and orphaned infants in Malawi.
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 convictions concern whether donations intended for infant nutrition and related services reached the stated beneficiaries. The prison terms, restitution orders and forfeiture materially affect donor trust and any remaining ability of the charity to operate.
Attribution
Who reported or established this
The convictions, sentences and diversion amount were reported by the U.S. Attorney's Office based on the federal court proceedings. Local station KHBS reported statements made during sentencing.
Evidence limits
What remains unverified
No Halo has not independently audited every donation or expenditure, determined how many intended beneficiaries went without assistance, established the charity's current operational status, or determined whether either defendant will pursue an appeal.
Right of reply
Organization response
During sentencing, Lacey Carney apologized and said she was deeply sorry, according to KHBS. Jason Carney's attorneys had requested a sentence below the applicable range. No separate response from a current 2nd Milk board or management team 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 17, 2026. See an error or a later outcome? Submit a correction or right of reply.