A 79-year-old Foster City woman once honored as San Mateo County's Woman of the Year was sentenced Friday, Aug. 14, to six months in county jail for embezzling more than $813,000 from StarVista, the local mental health nonprofit where she worked for two decades.
San Mateo County Superior Court Judge Kevin Dunleavy handed down the sentence to Clarise Blanchard, splitting the difference between prosecutors who sought a three-year, four-month prison term and defense attorneys who asked for probation only, according to the San Mateo County District Attorney's Office via Bay City News.
Blanchard told the court she was "sorry" for her actions.
The sentence carries a two-year probation term, 250 hours of community service, full restitution to StarVista and state and federal tax authorities, and a ban on working or volunteering in any financial position. Blanchard, who is currently out of custody, must report to jail by Oct. 17.
How the scheme worked
Prosecutors said Blanchard created a fraudulent Chase Bank account and funneled charitable donations meant for StarVista into it over roughly 13 years during her two-decade tenure at the nonprofit. She also forged the signature of StarVista's chief officer on thank-you letters sent to donors, concealing the theft.
The scheme unraveled after Blanchard retired in 2022, when a family foundation contacted StarVista to ask about a $50,000 donation that never appeared in the nonprofit's records. An internal audit uncovered the full scope of the embezzlement, The Almanac reported in January.
Blanchard was arrested in December 2023 and originally faced six felony counts and three sentencing enhancements. She pleaded no contest in October 2025 to three felonies: identity theft, tax fraud and money laundering involving more than $150,000. Charges of obtaining property worth more than $500,000 and forgery were dismissed under the plea deal.
A prominent figure's fall
The county Commission on the Status of Women named Blanchard its 2008 Woman of the Year for her work helping women struggling with substance abuse and mental health issues. Before retiring, she earned an annual salary of more than $140,000 as StarVista's clinical director.
StarVista itself shut down on Aug. 1, 2025, after negotiations for a merger and county assistance fell through. The nonprofit cited ongoing financial difficulties, though it did not directly blame Blanchard's theft. At its peak, StarVista employed more than 200 people, served over 38,000 county residents annually and operated crisis response teams with eight local police departments.
The closure complicates the question of who receives restitution. The court outlined a restitution figure of $813,372.90 at sentencing, though prosecutors said that amount is subject to change. A restitution hearing is set for Nov. 20, when a judge will determine the final figure and who is legally entitled to receive it.
Blanchard's sentencing comes nearly two weeks after another high-profile white-collar case in the county: former San Mateo County Community College District chancellor Ronald Galatolo received eight months in jail for misusing public funds, as we reported Aug. 4.
