Cauthen’s sentence begins July 2

BYTHEWOOD—In a little more than 30 days, a former Blythewood attorney and town councilwoman will become a federal prison inmate.

Kathleen Cauthen, 47, is required to surrender to federal authorities no later than 2 p.m. July 2 to begin serving a 30-day sentence, according to court documents filed Friday.

On May 14, Cauthen pleaded guilty to one count of misprision of a felony for her role in a $28 million health care fraud scheme. A second count of conspiracy was dismissed in exchange for her cooperation in the case.

Cauthen could’ve faced up to eight years in prison and $500,000 in fines had she been convicted on both counts.

As it stands, there are no fines and Cauthen must serve one year of supervised release after her release from prison in August. She must, however, pay nearly $1.8 million in restitution.

In addition to routine conditions common in plea agreements, Cauthen must also participate in an approved mental health program, according to court documents.

Cauthen must supply financial records to the federal government, and is also prohibited from opening new lines of credit until the restitution is fully paid, documents state.

The sentencing document filed Friday doesn’t specify where she’ll be incarcerated, but Cauthen must surrender at the institution where she’ll be serving her term, a sentencing order states.

At least four others were charged in the case.

William Worthy, identified in court records as the ringleader, was sentenced to 82 months. He’s scheduled for release in September 2018, according to the federal prison database.

There is no parole in the federal prison system, though inmates are eligible to earn “good time credits” of up to 54 days per year, according to court documents.

In March, codefendant Angela Slavey Posey was sentenced to six months probation and 50 hours of community service.

Bart Sidney Posey has pleaded guilty in the case as well and his sentencing is scheduled for July 13.

Charges against Richard Bachman have been dismissed because Bachman died in December 2017, court records state.

Transcripts from Cauthen’s guilty plea hearing include two pages of redacted testimony from FBI Special Agent Susan McDavitt regarding the facts surrounding the charges against Cauthen.

At the hearing, Cauthen acknowledged there was enough evidence to convict her of misprision of a felony, including that she had knowledge of the crime, failed to report it, and helped conceal it.

“Do you think the government could prove those elements against you had it gone to trial on Count Two?” the judge asked.

“Yes, Your Honor,” Cauthen answered.

Later in the hearing, defense attorney Cynthia Chappell clarified the extent of Cauthen’s knowledge of the fraud.

“She would also like the Court to understand – and I can have Ms. Cauthen say this, that she was willfully blind to the events around her,” Chappell said. “She understands that is the same as knowing.”

Related: Cauthen gets 30 days; must pay $1.8M restitutionFormer Councilwoman faces Federal chargesFormer Councilwoman awaits day in courtFormer Councilwoman pleads guiltyCauthen sentencing delayed$5 million civil penalty imposed on Katie Cauthen

Contact us: (803) 767-5711 | P.O. Box 675, Blythewood, SC 29016 | [email protected]