SALT LAKE CITY -- Former Layton city director of economics Seth J. Butterfield, 78, was sentenced Wednesday in federal court to three years of probation for embezzling public funds.
Butterfield, of Ogden, will also have to pay back the full amount, $116,064, stolen from the Department of Housing and Urban Development.
Butterfield, who is confined to a motorized wheelchair, pleaded guilty Aug. 25, 2011, to one misdemeanor count of fraudulent transaction involving HUD, said Melodie Rydalch, public information officer for the U.S. Attorney's Office in Salt Lake City.
According to court documents, from 2004 to 2006 Butterfield used $116,064 from community development block grant funds to pay his salary as the executive director of a nonprofit company, Affordable Land Lease Home Inc., while he was employed as the grant administrator for Layton.
Federal investigators wrote that Butterfield had hidden the fact he was the nonprofit's executive director and his salary from the city. Layton was also paying Butterfield a salary ranging from $36,000 to $62,000 from June 26, 2000, to July 21, 2006, as CDBG administrator and economic development specialist.
During that time period, Butterfield authorized three contracts between Layton and ALLH to build low-income housing.
City officials said when they and Butterfield realized there was a conflict of interest, Butterfield quit his job with the city. The federal investigation began shortly afterward.
A federal grand jury indicted Butterfield on Dec. 1, 2010, on two counts of wire fraud, two counts of theft from a program receiving federal funds and two counts of money laundering.
In exchange for the plea, the U.S. Attorney's Office agreed to dismiss all the original charges.
Butterfield faced up to 20 years in federal prison on each of the money-laundering counts and up to 10 years on each of the wire fraud and theft charges.