Lacey Carney sentenced to federal prison in Fayetteville charity fraud case

Lacey Carney was sentenced in Fayetteville federal court to three years in prison on Oct. 14. She must also pay $514,098.46 in restitution for her role in concealing a charity fraud scheme. The judge also ordered one year of supervised release.

Judge Timothy Brooks handed down the sentence. Lacey Carney co-founded 2nd Milk, a nonprofit based in Springdale. Prosecutors declined to comment after the hearing ended.

Lacey Carney and her husband, Jason Carney, pleaded guilty in June. She pleaded guilty to one count of misprision of a felony. She admitted she concealed information about a federal crime.

Jason Carney pleaded guilty to conspiracy to commit wire fraud. He also pleaded guilty to two counts of filing a false return and one count of structuring. A federal indictment unsealed in January 2025 outlined her involvement.

The indictment says she claimed to be the charity’s chief financial officer and treasurer. Prosecutors stated she served no such actual function at 2nd Milk. The couple had previously claimed they took no salary from the group.

The government alleges Lacey Carney listed the charity as primary employer on four loan applications:

• An Oct. 21, 2021 loan application for a 2021 Tracker fishing boat and trailer.
• An Oct. 27, 2021 co-signed application for a 2020 Toyota Tundra pickup.
• A Feb. 11, 2022 co-signed loan application to buy a 2020 Dodge Ram.
• A May 2, 2022 co-signed bank application for a home equity line of credit.

Both Carneys listed their annual salaries as more than $200,000 each on those forms. The government also alleges she used charity donations to fund personal expenses. An indictment record shows an email sent by her husband on Feb. 17, 2020.

Jason Carney asked a bank employee to move $4,300 from 2nd Milk to a personal account. The next day, Lacey Carney remitted a personal check for $4,279 to a clinic. That check paid for a cosmetic surgery procedure.

The indictment says the check required the transferred nonprofit funds to clear. Records also state the couple opened an American Express Gold Rewards account in 2015. It was opened in the name of Second Milk Inc.

Five cards were tied to that account for the couple and relatives. They spent over $145,000 on the cards in the first 11 months. Alleged purchases included international cruise tickets, event tickets, furniture, dental bills, clothing, and restaurants.

The Carneys later got two more American Express cards under 2nd Milk names. The government contends they spent over $18,000 in seven months on airfare to Asia, medical bills, and auto repairs. Her husband also sent over $900,000 from charity accounts to personal cards.

Federal misprision involves having knowledge of a felony and taking steps to conceal it. Supervised release requires defendants to follow court rules after leaving prison. Restitution orders require defendants to repay money lost through criminal conduct.

The Springdale nonprofit had listed Lacey Carney as a board member alongside her husband. Jason Carney had served as the board chair and president. Her prison term begins after federal processing.