Cauthen gets 30 days; must pay $1.8M restitution

Blythewood—A former Blythewood Town Councilwoman who helped bilk an estimated 17,000 people out of $28 million in fraudulent health care claims will spend 30 days in prison.

Kathleen (Katie) Cauthen, 47, was also sentenced to 12 months of supervised release and ordered to pay nearly $1.8 million in restitution, according to a sentencing order filed Monday.


Cauthen could’ve received up to three years in prison and a $250,000 fine for the misprision of a felony count to which she previously pleaded guilty. Prosecutors recommended an “advisory sentence of 21 to 27 months.

The one-page sentencing document says the sentence was part of a plea agreement that the court accepted. No further details from the nearly 90-minute hearing were contained in the document.

Cauthen has been a cooperating witness in the government’s investigation and prosecution of others in the health care fraud case. Others received more harsh penalties.

William Madison Worthy, the ringleader and a former client of Cauthen, got 82 months – or about seven years – and three years of supervised release after pleading guilty in 2016. Worthy was also ordered to pay $6.5 million in restitution, according to court records.

Other codefendants have also pleaded guilty, including Angela Posey and Bart Posey.

Angela Posey was sentenced in March to six months of probation. Bart Posey pleaded guilty in January and his sentencing was rescheduled from April 30 to July 13, documents state.

Cauthen’s sentencing concludes a case that originated in 2013 and involves acts dating back to at least 2008, according to court documents. Cauthen is one of several people indicted in the multi-state health care fraud scheme.

The suspects embezzled funds from premiums paid by people who had signed up for health plans that were unauthorized, diverting millions of dollars in premiums for the defendants’ own personal use, according to an FBI news release.

Shell companies were set up to facilitate money laundering.


  1. Rachel Taylor says

    I know Mrs Cauthen and love her dearly. I understand this verdict and sentencing is public knowledge however find it truly disheartening that you would publish this article, with a photo and title line that defames a truly honest woman. Mrs Cauthen clearly made a mistake trusting a client. She admitted guilt in “that crime”. There immediately after gave up her law license to protect her son/husband from any further embarrassment, which YOU In this syndication are causing. She has paid penance to the government for over six years helping to nail the sob that lied to her and several others-
    . She has been living all that time with sentencing over her head. She has worked hard to over come her mistake. She is an amazing person in my opinion. Is a dedicated mother who has focused on raising a child, going to church, starting from scratch professionally and doing for all around her. Those that are apart of her world know and love this woman. We all make mistakes, shame on us for being so judgemental. I think very little of a publication that would defame a member of their community, someone who served county counsel for years, and whom is one of the most loving mothers and friends I know. Please remove this from your website and dear God from social media. Please consider protecting her son. Thank you.

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