SALT LAKE CITY — A former Layton city grant administrator pleaded guilty Thursday to misappropriating federal dollars intended for low-income housing projects to pay his own salary.
Seth J. Butterfield, 77, admitted in U.S. District Court 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 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 to the misdemeanor charge.
Butterfield 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.
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.
When the Layton city attorney asked Butterfield if he was receiving pay, he initially denied it but later admitted otherwise.
Butterfield is scheduled to be sentenced Nov. 8. He faces up to one year in jail and a $100,000 fine.