Former Nonprofit Director Laundered More Than $800K, Gets Jail Time In SMC: Report

REDWOOD CITY, CA — A former clinical director of a San Mateo County nonprofit was sentenced to six months in county jail Thursday after admitting to laundering money from more than $800,000 in donations intended for the organization, according to a report from The Mercury News.

Clarise Ann Blanchard, 79, of Foster City, worked for behavioral health nonprofit StarVista for 20 years. She pleaded no contest in October to felony identity theft, tax fraud and money laundering involving more than $150,000, the Mercury News reported, citing the San Mateo County District Attorney's Office.

Prosecutors said Blanchard diverted about $813,000 in donations intended for StarVista into personal bank accounts between 2009 and 2022.

San Mateo County Superior Court Judge Kevin Dunleavy also sentenced Blanchard to two years of probation and 250 hours of community service.

Blanchard apologized during sentencing, telling the judge she was “so, so sorry for the decisions she made,” according to prosecutors.

The District Attorney's Office had sought a sentence of three years and four months in state prison. Chief Deputy District Attorney Shin-Mee Chang told the Mercury News that prosecutors wanted a longer sentence but respected the judge's decision.

Blanchard was originally charged with additional counts including embezzlement and forgery, but those charges were dropped under her plea agreement.

The missing money came to light after Blanchard retired in 2022, when StarVista learned that a $50,000 donation had not reached the organization. An audit subsequently found that Blanchard had created a bank account in her own name and redirected donations into it, prosecutors said.

StarVista, which provided behavioral health services in San Mateo County, closed last year amid financial challenges.

Read the full story at The Mercury News