San Jose: Former group home operator pleads guilty to pocketing foster care funds

  • 📰 mercnews
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 68%

Law Law Headlines News

Law Law Latest News,Law Law Headlines

Annie Corbett admitted in court to diverting public and grant funds to pay for personal expenses including a timeshare; she also withheld employment taxes from workers but kept the money, feds say

SAN JOSE — A former South Bay group home owner pleaded guilty to federal fraud charges Tuesday, admitting in court that she misappropriated more than $1.2 million by pocketing her workers’ tax withholdings, and spent public and grant funds — meant for foster care support — on personal expenses including her timeshare.

The charges to which she pleaded, one count each of wire fraud and willful failure to pay over employment taxes, carry maximum prison sentences of 20 years and five years in prison, respectively, and up to a $250,000 fine for each count. Since the case resolution was reached through a plea agreement, it is unlikely Corbett’s sentence will approach those upper sentencing boundaries.

Corbett told this news organization in a 2019 interview that she closed the homes after her company was denied licensing by the state to manage what are known as Short-Term Residential Therapeutic Programs. She said that she and her employees, which numbered about 60 a year, had worked for two years ramping up to meet the programs’ higher care and service standards, and thereby keep the homes running.

The bookkeeper conflict coincides with the time period during which Corbett now says she committed fraud. The U.S. Attorney’s Office news release about Corbett’s guilty plea states that she “admitted that she deceived her bookkeeper and CPA” while she pocketed payroll taxes that were supposed to go to the IRS.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 88. in LAW

Law Law Latest News, Law Law Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Hoover woman, husband plead guilty to attempting to assist ISISAccording to the DOJ, prior to their marriage and continuing after their marriage, the Hoover woman and her New York husband discussed, planned, and ultimately attempted to travel to the Middle East together in order to join and fight with ISIS.
Source: WTVYNews4 - 🏆 590. / 51 Read more »