SPRINGDALE, Ark. (KNWA/KFTA) — Jason Carney, the co-founder of the Springdale-based nonprofit 2nd Milk, pleaded not guilty to 15 federal charges, including wire fraud, at his arraignment on Monday. Carney was arrested by the U.S. Department of State’s Diplomatic Security Service on January 10 and booked into the Washington County Jail.
The charges against Carney include one count of conspiracy to commit wire fraud, 11 counts of wire fraud, and three counts of structuring financial transactions to avoid reporting requirements. If convicted, Carney faces up to 20 years in prison and substantial fines. Additional charges could lead to restitution payments.
Carney and his wife, Lacey Carney, founded 2nd Milk, an organization that raises funds for initiatives in Africa, such as providing baby formula, education, and agricultural projects. Investigators claim the Carneys misused hundreds of thousands of dollars for personal expenses instead of the charity’s intended projects.
Carney is currently out on a $5,000 unsecured bond with several conditions, including travel restrictions and financial limitations. He is prohibited from opening new accounts, incurring new debt, or liquidating assets without prior approval from a probation officer. Additionally, Carney cannot have contact with potential witnesses.
Carney’s trial is scheduled for March 3 at the Federal Courthouse in Fayetteville, with a pre-trial hearing set for February 27.