SAN JOSE, Calif. (KRON) – The CEO of a foster care home for children and adolescents in San Jose pleaded guilty to fraud, the Department of Justice announced Tuesday in a press release.
Corbett Group Homes (CGH) was a San Jose based group homes company that provided foster care for children and young adults in the San Jose area. The CEO and owner, 55-year-old Annie Corbett of Redwood City, was originally charged on October 20, 2020.
In the plea agreement entered Tuesday, Corbett stated she was the owner of CGH for almost seven years, from 2011 through mid-2018 when the company closed. Corbett was the sole person responsible for a few tasks that typically require the analysis of multiple people, such as job termination and hiring, processing employee payroll, and being the sole signatory on CGH’s bank accounts.
Corbett admitted to knowingly failing to pay employment taxes to the IRS, deceiving employees into believing taxes have been paid, and to diverting funds from a CGH bank account to a personal account. She explained that the fraud she committed involved funds the company received directly from local government and private charities.
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Corbett is scheduled for another sentencing hearing in San Jose federal court on January 31, 2023. She remains out of custody pending the hearing. Corbett faces up to 20 years in federal prison.