Defendant Embezzled Over $14,000 from Keep Your Home California, California’s Hardest Hit Fund Program
Raymond Cawthorne, 57, pleaded guilty today to embezzlement of public funds, Special Inspector General Christy Goldsmith Romero and U.S. Attorney McGregor W. Scott announced.
According to court documents, between May 2015 and Oct. 2016, Cawthorne embezzled over $14,000 belonging to the Keep Your Home California (KYHC) Program. KYHC was a federally funded program launched in response to the 2008 financial crisis that provided eligible homeowners with temporary
mortgage assistance so that they could avoid foreclosure and stay in their homes. The KYHC program was part of a broader effort by the federal government to stabilize the nation’s housing market where states with the most distressed markets received federal monies to develop locally tailored foreclosure prevention solutions.
Cawthorne is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 24, 2020.
Cawthorne faces a maximum penalty of 10 years in prison and a fine of up to $250,000. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
SIGTARP investigated the case. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
The Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP) is a federal law enforcement agency that targets crime at financial institutions or in TARP housing programs and is an independent watchdog protecting the interests of the America people. SIGTARP investigations have resulted in the recovery of $10 billion and 262 defendants sentenced to prison.
To report a suspected crime related to TARP, call SIGTARP’s Crime Tip Hotline: 1-877-744-2009. To receive alerts about reports, audits, media releases, and other SIGTARP news, sign up at www.SIGTARP.gov. Follow SIGTARP on Twitter @SIGTARP.