Jacqueline Mills, Lunch Money Embezzlement, AR 2024

LITTLE ROCK, AR – Jacqueline Mills, 41, of Helena-West Helena, and Anthony Waits, 38, of England, are facing serious time after a federal jury slammed them with guilty verdicts on all 40 counts related to a multi-million dollar fraud scheme targeting funds meant to feed hungry children in Arkansas. The pair systematically ripped off the United States Department of Agriculture (USDA) feeding programs, leaving a trail of deceit and stolen resources.

The eight-day trial, presided over by United States District Court Judge James M. Moody, Jr., laid bare the extent of the fraud. Mills was convicted of one wire-fraud conspiracy charge, 25 counts of wire fraud, 10 counts of bribery, and 3 counts of money laundering. Waits was found guilty of one count of wire-fraud conspiracy. Prosecutors presented evidence showing the pair stole over $4 million from programs administered through the Arkansas Department of Human Services (DHS).

According to the Department of Justice, the scheme revolved around inflated meal claims. Mills, claiming to operate 34 feeding sites, submitted numbers of meals “served” that were grossly exaggerated – and in many cases, completely fabricated. Her co-conspirators, Tonique Hatton and Gladys Waits (Anthony Waits’ estranged wife), both DHS employees who have already pleaded guilty, played a crucial role in approving these fraudulent claims and providing cover. Mills allegedly paid bribes to Hatton and Gladys Waits to ensure her programs sailed through without scrutiny. Over 50 witnesses, including Mills herself, took the stand.

The jury wasn’t buying Mills’ attempt to paint the payments to Hatton and Gladys Waits as “gifts” – including a $5,000 housewarming present to Hatton – or reimbursements. The USDA had already shelled out over $2.7 million based on Mills’ bogus claims, including payouts for locations where no meals were ever provided. The government is now moving to seize assets obtained through the fraud, including real estate, four vehicles, and over $490,000 from multiple bank accounts.

Anthony Waits’ involvement was equally brazen. He recruited multiple feeding program sponsors to submit inflated claims, then took a cut of the fraudulently obtained funds. Sponsors like Waymon Weeams, James Franklin, Christopher Nichols, and Rueben Nims allegedly paid Waits a percentage of the federal money they received in exchange for his wife’s approval of the inflated claims. Waits illegally acquired $1.6 million through this scheme.

“This verdict confirms what the evidence has shown from the beginning—Jacqueline Mills and Anthony Waits are thieves who preyed on the most vulnerable members of our society,” stated Acting United States Attorney Patrick C. Harris. “Their outrageous behavior…is among the most egregious fraud this office has seen, and we will request a sentence that reflects the seriousness of their conduct.” Sentencing dates for Mills and Waits will be announced at a later time. The USDA-OIG, IRS-Criminal Investigation, and FBI’s Little Rock Field Office all contributed to the investigation.

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