Feds race to sell off huge stockpile of classic cars, luxury superbikes and John Deere tractors hoarded by Texas' 'Gucci Goddess' as they are attacked by 'rodents and rust' - days after she plead GUILTY to $100M US Army fraud

Loot seized from 'Gucci goddess' Janet Mello is under attack from vermin in a Texas warehouse as prosecutors try to claw back $108 million lost to the Army fraudster.

The former finance officer faces up to 125 years in jail after she admitted spending funds meant for soldiers' children on a vast fleet of luxury vehicles and 31 houses across the US.

Many are already thought to have been sold by the federal government but a receiver has been appointed to flog the rest before they rot away in storage.

'Many of these items, most notably the vehicles, have not moved in months if not years,' US district attorney general Todd Keagle told the court.

'Rodents and rust appear to have damaged some of the items, which are also suffering from lack of use. 'As a result, it is essential that the items be sold before their value diminishes any further.'

Mello, 57, stole millions of dollars from military funds and blew it on jewelry, clothing, luxury vehicles and real estate in one of the biggest fraud cases the military has ever seen 

Janet Yamanaka Mello was seen walking out of the federal courthouse in San Antonio with her husband Mark after she appeared before Magistrate Judge Richard Farrer and pleaded guilty to five counts of mail fraud and five charges of filing fraudulent tax returns

A 1911 Harley-Davidson 7 is among the pick of Mello's classic motorbike collection (file photo)

Mello was in court in San Antonio on Wednesday with her husband Mark to plead guilty to five counts of mail fraud and five charges of filing fraudulent tax returns.

She controlled the finances of the 4-H Military Partnership Grant program and was able to divert $108 million to a bogus company she created over an eight-year period.

She accumulated nearly 80 luxury vehicles Maserati's, Ferraris, Aston Martins, Mercedes, Tesla's, Land Rovers and more than a dozen Harley-Davidson motorbikes, some dating back to 1911.

Delivery men dubbed her 'the Gucci Goddess' for the constant stream of jewels and luxury clothes ordered to her addresses in Texas, Maryland, Colorado, Washington, and New Mexico.

The loot brought to a federal lock-up in Gonzales County includes four classic cars, two John Deere tractors and 11 of her motorbikes.

The 1911 Harley-Davidson is described as a 7 Single, while other models included a 1927 Indian Scout, a 1926 Harley B-Single, and a 1956 Ariel.

Jewelry, a boat, a gun safe and six all-terrain vehicles are also awaiting new owners in the repository 80 miles east of San Antonio.

But the newly appointed receiver will also be asked to get what he can for more mudane items such as 'multiple boxes of dishware', and 'two ladders'.

A 1955 Ferrari Fratelli was also seized by investigators (file photo)

Mello also owned a 2003 Aston Martin Vanquish (file photo)

Mello also owned a 1935 Plymouth Sedan (file photo) and a 2018 Maserati Granturism (file photo)

Mello used some of the $100million she siphoned from the US Army to buy a $250,000 Land Rover Range Rover, federal prosecutors say

The warehouse in Gonzales County also contains what are listed as 'Two John Deere tractors'

The 1968 Harley-Davidson FLH Electra Glide has a top speed of just under 100mph

'In the end, we expect there's going to be a large number of assets both in number and monetary value that are going to be recovered by the US government,' Mello's lawyer Albert Flores, as she left court.

'Today was the beginning of the long process where she pled guilty.

'She's accepting responsibility for her actions. She's very remorseful for what she's done.'

Her scheme came crashing down when criminal investigators from the IRS worked with army investigators as they put the pieces of the puzzle together - before Mello was criminally indicted in December 2023.

It was the IRS who flagged that her lifestyle - buying million-dollar homes multiple times a year - was not supported by her $130,000 a year salary.

Despite the significant criminal fraud she is accused of, was allowed to leave without bail, and officials sparked outrage after it emerged that Mello is set to be allowed to retire with full benefits.

The military admitted there was nothing they could do to strip it from her because she was protected under a federal law that was held up in government bureaucracy.

An Army spokesman said: 'The command has no authority to impact Ms. Mello's retirement.'

While there are exceptions for treason and bigger offenses, 'there is no similar statutory authority for denying retired pay based on a conviction of other offenses,' she added.

After the scheme came to light, questions were raised over how the military failed to spot such a large sum of money being moved under their noses.

Assistant US Attorney Justin Simmons said the army hadn't conducted proper audits of her program, while others close to the investigation say that the Army just worked on the assumption of goodwill of its employees.

A source familiar with the investigation told the Express-News about the Army leaders: 'They stove-piped the process to only one person.

'They gave her complete carte blanche, and she found all the loopholes.'

One of the sprawling mansions that drew attention to Mello was this eight-bedroom, sixteen-bathroom home in Preston, Maryland - as the IRS began to question how she afforded such lavish purchases on a $130,000 salary 

This is Mello's $2.3million estate in Castle Rock, Colorado 

This home was listed as one of the properties to seize. It cost Mello $1.1 million and is in San Antonio, Texas

Mello's $3.1million property in Preston, Maryland. She regularly filed fraudulent paperwork and deposited grants a total of 40 times into her fake business during a six-year period, securing over $100,000,000 for herself, court documents allege

The army had also replaced some of its administrative restrictions as part of an 'organizational shake-up', giving Mello autonomy in her position.

An insider told the local paper: 'It speaks to the nonchalant-ness of the command and its lack of internal controls.'

Former federal prosecutor Robert Almonte Jr. said that Mello was not even 'discreet on her part' and her plot was 'nothing super complex,' but incompetent government programs are not 'equipped to monitor these things.'

Almonte continued: 'In some fraud instances, they at least take steps to make sure to hide their fraud. There was no apparent attempt to hide what she was doing with the money after the fact.'