No Halo News · Sourced development
Federal court sentenced 2nd Milk founders after guilty pleas in donor-fraud case
The U.S. Attorney’s Office for the Western District of Arkansas said a federal judge sentenced 2nd Milk founders Jason Carney to 192 months in prison and Lacey Carney to 36 months. Jason Carney admitted charges including conspiracy to commit wire fraud and filing a false nonprofit tax return. The court found that he diverted more than $2 million from the charity, which solicited donations to help malnourished and orphaned infants. Lacey Carney pleaded guilty to failing to report the fraud.
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 establish that leaders diverted substantial charitable assets and made false representations about how donor money would be used. The case directly concerns donor trust, financial controls and executive accountability.
Attribution
Who reported or established this
The diversion amount, offenses, guilty pleas and sentences were reported by the U.S. Attorney’s Office based on court findings and case records.
Evidence limits
What remains unverified
No Halo has not independently reviewed the complete court docket, reconstructed every transaction or established the charity’s current operating and tax-exempt status. The possibility of an appeal was not addressed in the consulted release.
Right of reply
Organization response
No separate response from 2nd Milk was located in the consulted material. The Justice Department 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 17, 2026. See an error or a later outcome? Submit a correction or right of reply.