No Halo News · Sourced development
Federal court sentences 2nd Milk founders after guilty pleas in donor-fraud case
A federal judge sentenced 2nd Milk founders Jason Carney to 16 years in prison and Lacey Carney to three years, the maximum terms allowed for their respective convictions. Jason Carney pleaded guilty to conspiracy to commit wire fraud, filing false personal and nonprofit tax returns, and structuring transactions. Lacey Carney pleaded guilty to concealing and failing to report the wire-fraud scheme. The court found that Jason Carney diverted more than $2 million from a charity created to help malnourished and orphaned children in Malawi. The couple also agreed to forfeit their home because fraud proceeds were used toward its mortgage.
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 and guilty pleas convert earlier allegations into criminally established misconduct and provide donors with a materially different, final-stage picture of the charity's leadership and use of contributions.
Attribution
Who reported or established this
The U.S. Attorney's Office reported the sentences, guilty pleas and court finding concerning the diversion of nonprofit funds. Prosecutors and financial investigators documented personal spending from 2nd Milk accounts.
Evidence limits
What remains unverified
No Halo has not independently reconstructed every transaction, determined how much money may ultimately be recovered for donors or beneficiaries, or established whether any part of 2nd Milk remains operational. Any appeal or later restitution distribution was not established in the consulted material.
Right of reply
Organization response
Both founders pleaded guilty. At sentencing, Lacey Carney reportedly said she was deeply sorry and asked for a noncustodial sentence so she could correct her wrongdoing. Defense counsel sought a substantially lower sentence for Jason Carney. No separate response from an independent 2nd Milk board or remaining organizational leadership was located.
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.