A married couple from Bonita have pleaded guilty to conspiracy to commit fraud and tax evasion charges for soliciting donations of clothing and other items from companies — supposedly for charity — then reselling the items and using the proceeds for personal use.
Geraldine Hill, 59, and Clayton Hill, 58, pleaded guilty Tuesday to using their charity, On Your Feet Inc., also known as Family Resource Center, to obtain donations from various companies, with the items supposedly going to benefit low-income families and individuals.
The U.S. Attorney’s Office says the Hills received more than $16 million in goods from Feed the Children and Forever 21 between 2010 and 2017, though they also defrauded other companies.
Between 2011 and 2016, the couple received proceeds exceeding $1.3 million from the fraud, according to prosecutors.
Sentencing is slated for Aug. 28.
“Geraldine Hill and Clayton Hill exploited the public trust and charitable giving by using their charity to solicit over $16 million in goods from hardworking businesses and falsely promising to donate those goods to assist low-income families and individuals in need,” said Ryan L. Korner, Special Agent in Charge of the IRS Criminal Investigation division.
“Instead, the Hills resold the goods and profited over $1.34 million which they spent on vehicles, vacations and entertainment, as well as personal expenses for their family members. The Hills concealed their fraud by filing false tax returns on behalf of the charity and failing to report their illicit income to the IRS,” Korner said.
Acting FBI Special Agent in Charge Omer Meisel said, “While fraud is always wrong, the theft of charitable donations that were to be used to help San Diego’s low-income families is particularly disheartening.”
— City News Service
