Money Misused: A Tale of Charity and Luxury

A federal case began in late Monday and early Tuesday, where prosecutors examined the tax returns of two nonprofit founders from Springdale. The organization they ran was meant to give food and water to babies in Africa, but evidence shows the money went elsewhere. The defendants, Jason Boyd Carney and Lacey Christina Carney, are charged with fraud that hurt many donors and businesses. They used the charity’s funds for personal luxuries instead of helping children. The charity, called 2nd Milk, claimed it would provide nutrition, wells, and education to orphaned infants worldwide. It raised money through donations, sponsorships, and stock gifts. Jason Carney served as chairman, president, and CEO while Lacey was the chief financial officer, treasurer, and a board member. Their first indictment came from a federal grand jury on January 8, 2025. Jason faces eleven wire‑fraud counts, three charges of structuring bank transactions to avoid reporting requirements, and five counts of filing false tax returns. Lacey is charged with one conspiracy count related to wire fraud. Both have pleaded not guilty.Early in the trial, prosecutors highlighted the couple’s joint tax returns. The documents show modest earnings—about $50, 000 in 2017 and 2020, and lower amounts in other years. Yet prosecutors argue that the charity collected over $4 million from 2016 to 2024 under the promise of aiding African children. Most of that money allegedly funded a lavish lifestyle: mortgages, clothing, furniture, cars, a motorcycle, a boat, cosmetic surgery, and roughly $1 million in travel. The defense says Jason had no criminal intent and that Lacey was mainly a wife and mother who did not manage day‑to‑day finances. Their lawyer, Justin Gelfand, told jurors that the charity was still a mission and ministry that helped children in one of the poorest regions. He argued that while operations were imperfect, the intent was to help. The judge will hear how donations were raised, where they actually went, and how the money was moved before ending up in personal accounts. The case will continue to show whether the Carneys’ actions were a genuine charity gone wrong or deliberate fraud.