Superior Court Judge Allison Danner ruled Wednesday (Dec. 3) that Carlton was guilty of one misdemeanor and two felony counts for filing false tax returns from 2010 through 2012.
The ruling comes following a one-day trial Nov. 24. Carlton pleaded no contest in late September to six felony counts – grand theft, identity theft, embezzlement and three counts of forgery. He currently remains in custody and faces up to 16 years in prison when sentenced.
Carlton, 46, served for approximately four years as the symphony’s executive director before abruptly resigning in February. His resignation came shortly after bank officials notified the symphony board of directors that its accounts were unusually low. One endowment that originally contained more than $220,000 had just $375 remaining. A second account dropped from $195,000 to $395.
A follow-up investigation by the Los Altos Police Department and the California Franchise Tax Board later revealed that Carlton, a Novato resident, embezzled approximately $272,000 of the symphony’s funds by writing numerous checks to himself. According to the DA’s Office, Carlton used the funds to pay off personal debts. The tax fraud charges specifically stem from Carlton underreporting his wages and failing to report the embezzled money as personal income.
Deputy District Attorney Judy Lee told the Town Crier that Carlton would likely be sentenced in the first quarter of 2015. She noted that the symphony is eligible to file restitution claims during Carlton’s sentencing hearing. Lee added that a formal restitution hearing would be scheduled if Carlton’s defense team disputes the amount claimed by the symphony.
