Caminar Sues Former CFO for Embezzlement

The mental health provider claims former executive Richard Williams embezzled nearly $100,000 via a fake company.

Updated on Oct. 15, 2026 in Financial Crime

Caminar Sues Former CFO for Embezzlement

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Palo Alto-based mental health service provider Caminar has filed a lawsuit against its former CFO, Richard Williams, alleging he embezzled nearly $100,000. The company claims Williams set up a shell corporation to funnel funds and fabricated work products to facilitate the scheme.

Why it matters

The lawsuit highlights internal fraud risks at nonprofits managing significant public resources. Caminar previously secured a major $12.9 million contract from San Mateo County for work at the Cordilleras Mental Health Rehabilitation Center in 2023.

Caminar filed the civil lawsuit on October 2, 2026, while Redwood City officials are actively preparing a parallel criminal case against Richard Williams.

The players

Caminar

Caminar is a provider of mental health and substance use treatment services headquartered in Palo Alto.

Richard Williams

Richard Williams is the former CFO of Caminar who is accused of creating a fake company to embezzle nearly $100,000.

The details

Williams allegedly created a fake entity called CA REsource Consulting, using an address linked to his private firm, Mission Holdings. To mask the activity, the lawsuit claims he fabricated emails, work products, vendor contact details for a fake person named Michael Davis, and taxpayer identification forms.

In 2023, San Mateo County awarded Caminar a $12.9 million contract for services.
Caminar filed the lawsuit against Richard Williams on October 2, 2026.

Legal Context

This case follows a pattern set by the 2023 San Mateo County $12.9 million contract, illustrating the heightened scrutiny on financial oversight for organizations managing public grants. Local jurisdictions like Redwood City are increasingly prioritizing the prosecution of white-collar crimes involving taxpayer-funded service providers.

The allegations involve a service provider responsible for public health rehabilitation, which may lead to increased audits or oversight for local nonprofits. Residents served by programs at the Cordilleras Mental Health Rehabilitation Center may see shifts in administrative procedures as the agency responds to the lawsuit.

The takeaway

Organizations should implement strict vendor verification processes to prevent internal fraud via fake entities. Independent audits remain a critical defense for ensuring that public-facing mental health services maintain fiscal integrity.