Money Misused: A Tale of Charity and Luxury

A federal case began 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

• Name: 2nd Milk
• Mission Claim: Provide nutrition, wells, and education to orphaned infants worldwide.
• Funding Sources: Donations, sponsorships, stock gifts.

Leadership

Indictment Timeline

• January 8, 2025: First indictment by a federal grand jury.
• Charges:
• Jason: 11 wire‑fraud counts, 3 structuring bank transaction charges, 5 false tax return filings.
• Lacey: 1 conspiracy count related to wire fraud.

Both have pleaded not guilty.

Key Evidence

• Joint Tax Returns: Show modest earnings (~$50,000 in 2017 & 2020).
• Charity Revenue: Over $4 million collected from 2016–2024.
• Expenditures: Lavish lifestyle expenses—mortgages, clothing, furniture, cars, motorcycle, boat, cosmetic surgery, and ~$1 million in travel.

Defense Position

• Jason’s Claim: No criminal intent.
• Lacey’s Role: “Mainly a wife and mother; did not manage day‑to‑day finances.”
• Attorney: Justin Gelfand argued the charity remained a mission and ministry that helped children in one of the poorest regions, with imperfect operations but genuine intent.

Upcoming Proceedings

The judge will hear:

1. How donations were raised.
2. Where the money actually went.
3. The flow of funds into personal accounts.

The case will continue to determine whether the Carneys’ actions were a genuine charity gone wrong or deliberate fraud.