Bay Area/ San Jose

Redwood City Mental Health Nonprofit Rocked By $100K Fraud Claim Against Ex-CFO

AI Assisted Icon
Published on April 06, 2026
Redwood City Mental Health Nonprofit Rocked By $100K Fraud Claim Against Ex-CFOSource: Google Street View

Caminar, a Bay Area behavioral health nonprofit, says its former chief financial officer secretly slipped nearly $100,000 in bogus invoices through the system before quietly resigning in September 2025. The organization says an internal review uncovered the questionable payments, it then alerted law enforcement, and it is now trying to claw the money back while investigators dig into what happened.

In last Friday's statement, Caminar said the probe started in spring 2025 when staff flagged a suspicious consulting invoice. That one red flag led to a deeper review and, according to the nonprofit, independent investigators eventually tied other payments to a vendor that “appeared fabricated.” In all, they concluded that $99,375 had been misappropriated. Leadership also announced a new Compliance Committee and an anonymous ethics hotline as part of tighter financial controls. “To say it is deeply troubling that anyone associated with Caminar would cause us harm is an understatement,” CEO Mark Cloutier wrote.

How Investigators Say It Happened

According to The Mercury News, investigators traced the money to what they describe as a fictitious business that matched vendor information allegedly created by the CFO. The fraudulent invoices, they say, billed Caminar for consulting services that were never actually provided.

The Mercury News reports that Caminar brought in outside legal counsel and forensic accountants to help run down the paper trail. The nonprofit is now seeking repayment from the former executive.

What It Means For Clients And Donors

Caminar has emphasized that the disputed amount is small relative to its overall budget and says client care and day-to-day operations are not affected. Services remain fully funded, according to the organization.

According to Caminar, the nonprofit's impact report notes that it served more than 48,000 people in the last fiscal year and recently opened a teen and family wellness center in Palo Alto. In other words, the organization is trying to reassure clients and donors that the alleged fraud is a governance problem, not a service crisis.

Legal Steps And Responses

Redwood City police have opened an investigation, but a department spokesperson told The Mercury News that no further details are being released at this time.

The former CFO, Richard Williams, disputes Caminar’s account, according to the paper. Caminar, for its part, says it will pursue civil recovery while cooperating fully with law enforcement.

Legal Implications

If investigators and prosecutors ultimately find evidence that an employee intentionally diverted nonprofit funds, that could support criminal charges such as embezzlement, along with civil claims for restitution. At this point, no charges have been publicly filed, and any next steps will depend on how police and prosecutors decide to move forward.

In the meantime, Caminar says it is continuing to serve clients, tighten financial controls, and notify partners and funders about the situation. This story will be updated as officials or the parties involved release new information.