2nd Milk Founder Jason Carney Gets 16 Years for Diverting Charity Money Meant for Orphans in Malawi

Published Oct. 21, 2026. Case status is current as of that date.

Donors were told that every sponsorship dollar went to babies. "100% of the 2nd Milk sponsorships go directly to saving the lives of the most vulnerable babies living in developing countries," the charity's founder said, according to federal prosecutors. Instead, a federal court found, more than $2 million was diverted, and according to prosecutors, bank records showed money going to cosmetic surgery, a cruise, mortgage payments and trips abroad.

On Oct. 14, 2026, Jason Boyd Carney, 48, and Lacey Christina Carney, 47, the Springdale, Arkansas, founders of the nonprofit 2nd Milk, were sentenced in federal court in Fayetteville, the U.S. Attorney's Office for the Western District of Arkansas announced [1]. Jason Carney received 192 months (16 years) in prison followed by three years of supervised release. Lacey Carney received 36 months followed by one year of supervised release. Prosecutors said both received the maximum sentences allowed for their counts of conviction [1].

Status: Both pleaded guilty and have been sentenced (W.D. Ark. case number 5:25-CR-50005).

How the scheme worked

2nd Milk was created to benefit starving orphans in Malawi, according to prosecutors [1]. Based on the U.S. Attorney's release and court findings:

1. The promise. For more than four years, prosecutors alleged in a sentencing memorandum, Jason Carney presented 2nd Milk as "a fully transparent ministry." He told donors, among other things, "For every dollar 82 cents goes to babies today…the rest goes for overhead…in Africa" and "it's important to know that the Carneys are not taking your money when you sponsor babies, all that money goes specifically for those babies."
2. The "no salary" claim. He repeatedly assured donors that he did not, and never had, taken a salary and that "[a]ll of the funds go directly to the children."
3. The diversion. The court found Jason Carney diverted over $2 million from the nonprofit. According to prosecutors, a financial investigation and bank records showed the Carneys transferred 2nd Milk funds for cosmetic surgery, massages, tanning, pet expenses, a cruise, personal mortgage payments, car and boat loans, and luxury vacations, "so often that it aroused the suspicion of donors."
4. The travel. Prosecutors said the couple used 2nd Milk funds to travel to places including Rome, Peru, Japan, Barcelona, Cancun and Vietnam.
5. The cover-up. Jason Carney filed false tax returns for himself and for 2nd Milk's nonprofit Form 990 return to hide the diversion, prosecutors said. He also pleaded guilty to structuring cash transactions to evade reporting requirements.

Chief U.S. District Judge Timothy L. Brooks described Jason Carney's conduct as "profoundly disgusting" and "egregious, repulsive, and violative," according to the release [1].

The people sentenced

Jason Boyd Carney, 48, Springdale. Prosecutors said he pleaded guilty on the sixth day of his jury trial, during the prosecution's case, to one count of conspiracy to commit wire fraud, two counts of filing a false return (one personal, one for 2nd Milk's Form 990), and one count of structuring [1]. Sentenced to 192 months.

Lacey Christina Carney, 47, Springdale. She pleaded guilty to one count of misprision, meaning she knew of her husband's wire fraud scheme and failed to report it as required by law [1]. Sentenced to 36 months. Her conviction is for misprision, not for wire fraud itself.

The couple agreed to forfeit their home because wire fraud proceeds were used toward the mortgage [1]. KFSM 5News reported that the forfeiture covers their Springdale property and other assets connected to it [2].

The Diplomatic Security Service and IRS Criminal Investigation investigated. The sentencings were announced as part of a nationwide tax enforcement action led by the Justice Department's National Fraud Enforcement Division and the IRS [1][3].

"The defendant exploited the charitable intentions of donors who believed their contributions would help save the lives of malnourished and orphaned infants around the globe," said Special Agent in Charge Donald "Trey" Eakins of IRS Criminal Investigation's Charlotte Field Office [1].

Why sponsorship charities are vulnerable

Sponsorship programs ask donors to fund a specific child or cause far away, which makes the money hard to follow. Donors rarely see the program in person, and they often rely on the founder's personal assurances and faith-based language, exactly the kind of statements prosecutors quoted here. Precise-sounding claims like "82 cents of every dollar" can sound like an audited figure when they are not.

Red flags

• Absolute promises, such as "100% of your gift goes to the children," with no published financial statements to back them up.
• No independent audit or a Form 990 that is late, missing, or doesn't match what the charity says publicly.
• Founder-centered fundraising in which the founder's personal word is the main proof that money is used properly.
• Personal-looking spending visible to donors, such as frequent travel or lifestyle posts that don't match a small charity's mission.
• Pressure to give monthly by direct transfer to an organization you can't verify.

What to do

1. Look up the charity's filings before giving. Registered U.S. charities file an annual Form 990 with the IRS, which shows revenue, expenses and pay for officers.
2. Ask for specifics: how much reaches the program, who audits the books, and which local partners deliver aid.
3. Give by check or credit card to the organization itself, not to an individual, and keep records.
4. If you suspect a charity is misusing donations, report it to your state attorney general's charity division and, for online fraud, to the FBI's Internet Crime Complaint Center at ic3.gov [4].

Case status (as of Oct. 21, 2026)

Defendant	Court	Status as of Oct. 21, 2026	Source
Jason Boyd Carney, 48, Springdale (2nd Milk)	Federal, W.D. Ark. (5:25-CR-50005)	Pleaded guilty mid-trial (wire fraud conspiracy, two false return counts, structuring); sentenced Oct. 14, 2026, to 192 months + 3 years supervised release; home forfeited	[1][2]
Lacey Christina Carney, 47, Springdale (2nd Milk)	Federal, W.D. Ark.	Pleaded guilty to misprision; sentenced Oct. 14, 2026, to 36 months + 1 year supervised release	[1][2]

Statuses can change.

Sources

1. U.S. Attorney's Office, Western District of Arkansas, "Arkansas Non-Profit Founders Receive Maximum Prison Sentences for Defrauding Donors and the Government," Oct. 14, 2026. https://www.justice.gov/usao-wdar/pr/arkansas-non-profit-founders-receive-maximum-prison-sentences-defrauding-donors-and
2. KFSM 5News, "2nd Milk founders sentenced following conviction on federal fraud charges," Oct. 14, 2026. https://www.5newsonline.com/article/news/crime/2nd-milk-founders-sentenced-conviction-federal-fraud-charges/527-277663de-8d3b-4508-a5b3-38f5e9d3563f
3. IRS Criminal Investigation, "Arkansas non-profit founders receive maximum prison sentences for defrauding donors and the government," Oct. 14, 2026. https://www.irs.gov/compliance/criminal-investigation/arkansas-non-profit-founders-receive-maximum-prison-sentences-for-defrauding-donors-and-the-government
4. FBI Internet Crime Complaint Center (IC3) (accessed Oct. 21, 2026). https://www.ic3.gov/

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