StarVista, which contracts with San Mateo County to provide behavioral health counseling, announced today that it will close on Aug. 1 due to what it said were “financial challenges” and an unsuccessful merger attempt.

While StarVista programs will be ending, its Crisis Center and San Mateo County Pride Center will move to more affordable locations in the county and will remain open.

The nonprofit laid off a number of employees in April in order to cut costs. At one point, StarVista had 200 employees, its website said.

“We are heartbroken to share this news,” said Shareen Leland, LMFT, acting Chief Executive Officer of StarVista. “Our team, our potential merger partner, and our San Mateo County partners worked together in good faith to navigate StarVista’s complex situation. We are deeply grateful for their time, care and thoughtful consideration of our programs, clients and staff.”

StarVista, based in Burlingame, works with various local governments throughout San Mateo County including police agencies and school districts to provide counseling, training and crisis intervention programs. 

In 2023, an audit found that StarVista’s clinical director, Clarise Blanchard, 77, had embezzled $700,000 over a 13-year period, according to the District Attorney’s Office. She was arrested, made bail and her case is still pending with a preliminary hearing set for Sept. 4 in San Mateo County Superior Court. Blanchard was named San Mateo County Woman of the Year in 2008 for her work with helping women with substance abuse and mental health issues.

For the fiscal year ending June 30, 2023, StarVista had an operating deficit of $434,906, according to data it submitted to the IRS. It reported revenue that year of $16,273,133 — down from the $17,109,127 in the previous fiscal year.

CEO Sara Larios Mitchell was paid $237,642 not including $10,213 in compensation from related organizations.