(KRON) — The owner of a company that built group homes for foster children in San Jose was sentenced to one year in prison for wire fraud and failure to pay employment taxes, the U.S Attorney’s Office for the Northern District of California said in a press release.
Corbett Group Homes was owned by Annie Corbett, a Redwood City resident, who also acted as the company’s CEO. Corbett managed the company between 2011 and 2018 when it closed. Corbett pleaded guilty to charges last year when she acknowledged that she failed to pay employment taxes while manages about 60 employees each year.
Though Corbett would contract with payroll processing companies and issued W-2s to her employees, she did not pay the employment taxes and did not file the forms with the IRS. She also told attorneys that she had misled both her bookkeeper and accountant into believing the appropriate taxes had been paid.
Corbett ultimately admitted that she failed to pay around $752,000 to the IRS from 2014-2017. Corbett also told authorities that she diverted funds received from local government and private charities to support foster children for her own personal use. She said she would move the funds into her bank account as well as her husband’s.
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The U.S. Attorney’s Office said that Corbett used the funds to make personal credit card payments, retail business payments as well as fees for a vacation timeshare. The sentencing memorandum laid out over 44 donors who were victimized by Corbett.
Corbett is ordered to serve 36 months of supervised release after she completes her prison term. She could be ordered to pay restitution to the victims as well, and that will be determined at a hearing in June. Corbett is expected to begin her prison sentence on September 5, 2023.