SPRINGDALE, Ark. — Jason Carney, co-founder of the Springdale-based nonprofit 2nd Milk, pleaded not guilty to 15 federal charges on Monday, including wire fraud and conspiracy to commit wire fraud. Carney, who serves as the Board Chair and President of the organization, was arrested on January 10 by the U.S. Department of State’s Diplomatic Security Service and booked into the Washington County Jail.
The charges stem from an ongoing investigation into how funds raised by 2nd Milk, a charity intended to provide aid to Africa, were allegedly misused. According to the government, Carney and his wife, Lacey Carney, diverted hundreds of thousands of dollars in donations meant for baby formula, education, and farming initiatives for personal use.
At his arraignment in Fayetteville, Carney faced one count of conspiracy to commit wire fraud, 11 counts of wire fraud, and three counts of structuring financial transactions to evade reporting requirements. If convicted, Carney could face up to 20 years in prison and a $250,000 fine for the fraud charges, as well as up to five years and an additional fine for the financial structuring offenses. The Carneys could also be required to pay restitution if convicted.
Carney’s defense attorney argued for international travel privileges, citing his need to travel for work. Despite Carney’s history of returning to the U.S. after multiple international trips since the investigation began in November 2023, the judge denied the request, emphasizing the seriousness of the charges and the potential flight risk. In addition to travel restrictions, the judge imposed financial restrictions on Carney, including prohibiting him from liquidating assets without prior approval, opening new accounts, or incurring new debt without supervision.
The Carneys co-founded 2nd Milk with the mission of providing assistance to people in Africa, including supplying baby formula and supporting agricultural projects. However, federal investigators allege the funds intended for charitable purposes were diverted for personal expenses, raising questions about the nonprofit’s financial management.
Carney was released from jail on an unsecured $5,000 bond pending trial. His trial is scheduled for March 3 at the Federal Courthouse in Fayetteville, with a pre-trial hearing set for February 27.
The investigation into 2nd Milk has sparked concern among donors and supporters of the organization, with many closely watching the outcome of the case.