A Bonita couple was sentenced Nov. 6 to 15 months and nine months respectively in federal prison for using their charity to obtain donations from companies and then selling those donations without paying taxes on the profits.
Clayton Hill, 59, and Geraldine Hill, 60, will both surrender on or by Jan. 22, 2021, to begin their terms, according to court records. Geraldine Hill received 15 months and her husband got nine months.
The couple was ordered to each pay $50,933 to the Internal Revenue Service by U.S. District Court Judge Dana Sabraw. This represents the tax loss for each of them, according to the U.S. Attorney’s office.
A restitution hearing for the companies who donated items was set for Dec. 11. They both remain free on $15,000 bond each. Both have been barred from serving as a director or an office for any non-profit charity.
The couple acknowledged they conspired to fraudulently obtain charitable donations of clothing from multiple companies by falsely promising they would not sell the merchandise for profit.
The clothing was supposed to go to low income families and individuals. Disney asked the companies not to send clothing to the charities because the donated goods were appearing at local flea markets, according to court records.
They pleaded guilty June 9 to income tax evasion and conspiracy to commit mail fraud.
They could have been sentenced to 10 years in federal prison.
They resold donated clothing that was given to On Your Feet, which is also known as the Family Resource Center, which operated in Spring Valley. The U.S. Attorney’s office said the couple started to sell donated clothing in March, 2009.
They used proceeds to purchase vehicles, rent a home for $6,000 a month, and go on vacations, according to court records. Clayton Hill estimated his salary in falsified pay stubs as over $100,000 annually, according to the U.S. Attorney’s office.
