No Halo News · Sourced development
DOJ reports 2nd Milk founders sentenced in donor and tax fraud case
The U.S. Attorney’s Office for the Western District of Arkansas reported that a federal judge sentenced 2nd Milk co-founder Jason Carney to 192 months in prison on conspiracy, wire fraud and tax fraud charges and sentenced co-founder Lacey Carney to 36 months for failing to report the fraud. DOJ said the court found that Jason Carney diverted more than $2 million from the Springdale charity, which was formed 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 sentences and court finding concern the diversion of more than $2 million from a relatively small charity and directly affect donor trust, governance and the stewardship of funds intended for vulnerable children.
Attribution
Who reported or established this
The sentences, charges and diversion amount were reported by the U.S. Attorney’s Office for the Western District of Arkansas, which attributed the diversion finding to the federal court.
Evidence limits
What remains unverified
No Halo has not independently reviewed the complete court record, sentencing transcripts, restitution calculations or the charity’s current assets and operating status.
Right of reply
Organization response
No response from 2nd Milk or the Carneys 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.