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Former Layton grant administrator to serve probation for misusing federal funds

Published: Thursday, May 3 2012 5:56 p.m. MDT

SALT LAKE CITY — A former Layton city grant administrator will not go to prison for misappropriating federal dollars intended for low-income housing projects to pay his own salary.

A federal judge sentenced Seth J. Butterfield to 36 months' probation and ordered him to pay $116,064 in restitution. He pleaded guilty to one misdemeanor count of making a fraudulent transaction using U.S. Housing and Urban Development funds. The admission came as part of a plea agreement with federal prosecutors.

Butterfield, 78, was originally charged with two felony counts each of wire fraud, money laundering and theft from a program receiving federal funds. Prosecutors agreed to drop those charges in exchange for his guilty plea.

The Ogden man worked as the Community Development Block Grant administrator for Layton from June 2000 to July 2006. The HUD program provides affordable housing for poor people.

In January 2002, Butterfield formed a nonprofit company and worked as its executive director. At the same time, he authorized contracts between the city and his company to build low-income housing using CDBG money. He used $116,064 of the grants to cover a portion of his $279,000 salary from September 2004 to May 2006, according to court records.

Dennis Romboy Twitter: dennisromboy

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