South Bay resident charged with wire fraud in alleged scheme to convert funds intended for foster children

 

Date: November 2, 2020

Contact: newsroom@ci.irs.gov

San Jose, CA — Annie Corbett has been charged in a criminal complaint with wire fraud in connection with a scheme to defraud local county governments of funds entrusted to her for the benefit of foster children, announced Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (IRS-CI), Kareem Carter.

According to the complaint, Corbett, of Redwood City, Calif., owned and operated Corbett Group Homes, Inc. (CGH), a company with the stated mission to provide residential care for children and adolescents. According to the complaint, CGH received funds from local county governments, including Santa Clara County, for the benefit of foster children. The complaint explains that from 2011 through 2018, CGH operated three group homes and received funds from local county governments under a federal program entitled Title IV-E, Aid to Families with Dependent Children- Foster Care.

Under the program, the local county governments provided the funds to CGH that received the funds on behalf of minors residing in the group homes. The complaint alleges that Corbett used wire transfers to convert funds intended for foster children and to use the money for her personal enrichment, including credit card payments, personal expenses, and personal retail business payments. Corbett is charged with wire fraud, in violation of 18 U.S.C. § 1343.

The charges contained in the criminal complaint are mere allegations. As in any criminal case, the defendant is presumed innocent unless and until proven guilty in a court of law. If convicted of the charge, Corbett faces a maximum statutory sentence of 20 years imprisonment, a three-year term of supervised release, and a $1,000,000 fine.

Corbett is scheduled to make her initial federal court appearance on November 19, 2020, before U.S. Magistrate Judge Virginia K. DeMarchi.

The prosecution is the result of an investigation by the IRS-CI, FBI, and HHS-OIG with assistance from the office of Santa Clara County District Attorney Jeffrey F. Rosen. Assistant U.S. Attorney Chinhayi Cadet is prosecuting the case with the assistance of Jessica Leung.