2nd Milk president facing additional charges
FAYETTEVILLE, Ark. (KNWA/KFTA) — Jason Carney, co-founder and president of 2nd Milk, is facing new charges connected with the nonprofit.
Carney appeared in federal court May 28 after a superseding indictment was filed on May 21. The new indictment adds five new charges of false statements on tax returns.
According to the court documents, the federal government now says Carney falsified personal tax returns each year from 2018-2020, and filed false returns for 2nd Milk in 2021 and 2022.
New details unsealed in 2nd Milk co-founder's federal trial
The indictment says Carney significantly underreported his total income on his personal tax returns from 2018-2020. The new filing goes on to claim Carney falsified the amount paid as salaries, benefits, and other compensations through 2nd Milk in 2021 and 2022. The updated indictment claims Carney falsified the 2nd Milk returns to underreport the amount of compensation paid.
All told, Carney now faces 20 federal charges of wire fraud, conspiracy to commit wire fraud, structuring transactions to evade reporting requirements, and false statements in tax returns.
Federal authorities say Carney and his wife, Lacey, misappropriated donated funds to illegally enrich themselves. The indictment claims the Carneys used money given to help impoverished people in Africa to fund personal travel, routine living expenses, and more.
The new charges of false statements in tax returns each carry a maximum 3-year sentence and up to a $100,000 fine. If convicted of conspiracy to commit wire fraud or wire fraud, Carney could face up to 20 years in prison and a $250,000 fine. The other three counts carry a maximum sentence of five years in prison and the same fine. Carney could be faced with paying restitution if convicted on the final three charges, as well.
Trial is scheduled to begin on Sept. 2, 2025.
May 30, 2024: Springdale nonprofit 2nd Milk investigated for defrauding donors
Jan. 13, 2025: Co-founder of Springdale-based nonprofit facing federal wire fraud charges
Jan. 14: New details unsealed in 2nd Milk co-founder's federal trial
Jan. 16: Lacey Carney arraignment scheduled in 2nd Milk fraud case
Jan. 29: 2nd Milk co-founder pleads not guilty to wire fraud conspiracy charge
Feb. 28: 2nd Milk co-founders' federal trial moved to September
May. 21: Superseding indictment filed, adding five counts of false statements in tax returnsCopyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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