A Foster City woman accused by prosecutors of stealing about $700,000 from Burlingame-based mental health nonprofit StarVista over 13 years will not go to state prison but could spend up to a year in county jail, a San Mateo County judge said Friday, July 24, 2026.
Judge Kevin Dunleavy postponed the sentencing of Clarise Ann Blanchard to Thursday, Aug. 13, 2026, after prosecutor Kathy Wong's sentencing brief was filed late, District Attorney Steve Wagstaffe said. But Dunleavy signaled his intentions: probation, not prison, with the option of up to one year in county jail.
The prosecution is asking for jail time, Wagstaffe said.
Blanchard, who served as StarVista's clinical director, funneled about $700,000 in donations into a personal bank account between 2009 and her retirement in May 2022, according to the DA's office. She spent the stolen money on lavish trips, Wagstaffe said. Investigators also found forged thank-you notes sent to donors bearing the executive director's signature.
The scheme came to light after Blanchard retired. A family foundation contacted StarVista asking about a $50,000 donation. An audit revealed the full scope of the theft.
Blanchard was arrested in December 2023 and originally faced six felonies and three enhancements. In October 2025, she pleaded no contest to three felony counts: identity theft, money laundering, and failure to file income tax returns. The remaining charges were dropped. Had she gone to trial and been convicted, she could have faced up to 10 years in prison.
Dunleavy cited Blanchard's acknowledgment that she knew what she did was wrong as a factor favoring probation. Former StarVista CEO Sara Larios Mitchell also recommended probation and a public apology, according to Wagstaffe.
Blanchard is free on a $700,000 bail bond. Before her retirement, she earned more than $140,000 a year.
A local institution lost
StarVista was headquartered on Mahler Road in Burlingame and provided mental and behavioral health services in San Mateo County for nearly 60 years. At its peak, the nonprofit employed more than 200 people, served about 38,000 clients annually, and operated crisis response teams embedded with eight local police departments.
The nonprofit ceased operations on Aug. 1, 2025, after a failed merger with another county nonprofit. Its closure was due to financial challenges unconnected to Blanchard's embezzlement, Wagstaffe said. The organization's 2023 IRS filings showed expenses of $16.7 million against revenue of $16.3 million.
Because StarVista no longer exists, it remains unclear to whom Blanchard would pay restitution. Wagstaffe said he is unsure whether payments could go to the nonprofit's creditors.
In 2008, the San Mateo County Commission on the Status of Women named Blanchard its health and social justice Woman of the Year for her work helping women with substance abuse and mental health issues.
Sentencing is set for Thursday, Aug. 13, 2026, in San Mateo County Superior Court. The judge will determine the length of probation and the restitution amount at or after that hearing.
