State prosecutors investigating defunct San Francisco babysitting agency

FILE-- Michaela Azzopardi is seen at her job in the child care area of Support for Families of Children with Disabilities in San Francisco in August. Azzopardi filed a claim seeking unpaid back wages from a previous employer, Wondersitter, which shut down in June and has been accused of failing to pay more than 100 former babysitters tens of thousands of dollars for jobs. less FILE-- Michaela Azzopardi is seen at her job in the child care area of Support for Families of Children with Disabilities in San Francisco in August. Azzopardi filed a claim seeking unpaid back wages from a ... more Photo: Paul Chinn, The Chronicle Buy photo Photo: Paul Chinn, The Chronicle Image 1 of / 4 Caption Close State prosecutors investigating defunct San Francisco babysitting agency 1 / 4 Back to Gallery

State prosecutors are investigating the defunct San Francisco child care agency Wondersitter, which has been accused of failing to pay more than 100 former babysitters tens of thousands of dollars for jobs dating back several months.

The company, which shut down in June, had been the target of an investigation by the San Francisco district attorney’s office. But the case was recently moved to the California attorney general’s office, according to emails sent this week from the district attorney’s office to former babysitters.

A prosecutor and an investigator from the California Department of Justice have been assigned to the case, according to the emails. It is unclear why the matter was moved, but it could indicate that prosecutors are considering a civil, rather than criminal, case.

Both law enforcement agencies declined to comment.

Wondersitter, founded in 1998 under a different name, connected freelance babysitters with families seeking child care services. The company collected payment from parents and took a percentage of the money before paying the sitters, who worked as independent contractors.

The agency was well regarded by sitters and parents for years, but in 2016 began delaying payments to sitters and eventually stopped paying altogether, according to dozens of former sitters who say their attempts to contact Wondersitter’s owners about the unpaid fees have gone unanswered. And many parents who paid Wondersitter ahead of time for babysitting jobs never received the services before the company went out of business.

Sitters who formed a Facebook group in the wake of Wondersitter’s troubles are collectively owed about $85,000, according to their own tabulations.

In August, Wondersitter co-founder Rose Titcomb sought to place the company in involuntary Chapter 7 bankruptcy. But the Bankruptcy Court tentatively blocked the attempt this week, finding that Titcomb is not eligible to force the company into involuntary bankruptcy because she is a shareholder, not a creditor. The court intends to dismiss the attempt next week. Under bankruptcy law, only creditors can push a company into involuntary bankruptcy.

An attorney for Titcomb did not return a request for comment.

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If Wondersitter is not placed in bankruptcy, it will continue to owe money to the sitters and the parents, bankruptcy experts said. And outside of bankruptcy, the company’s owners could more easily distribute or conceal any potential remaining assets because they would not have to report financial information to the court and the company would not be under court protection.

Catherine Ho is a San Francisco Chronicle staff writer. Email: cho@sfchronicle.com Twitter: @Cat_Ho