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Federal judge sentences 2nd Milk founders for fraud involving charity funds

The U.S. Attorney’s Office for the Western District of Arkansas reported that 2nd Milk founders Jason and Lacey Carney were sentenced on October 14. Jason Carney received 192 months in prison after admitting conspiracy, tax and financial-reporting offenses; Lacey Carney received 36 months after pleading guilty to failing to report the fraud. The court found that Jason Carney diverted more than $2 million from the charity, which raised money to assist malnourished and orphaned children 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 sentencing establishes criminal accountability for diversion of substantial charitable funds and false reporting connected to a small regional charity. Donors may need information about the organization’s present operations, remaining assets and governance.

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 record, prosecutors and financial investigators.

Evidence limits

What remains unverified

No Halo has not reviewed the complete court record, independently traced every transaction or established the charity’s current operating and corporate status.

Right of reply

Organization response

No separate response from 2nd Milk or its remaining board was located in the consulted material. The two founders entered guilty pleas as described by the U.S. Attorney’s Office.

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.