Local psychologist pleads guilty to HUD fraud charge Son previously sentenced for equity skimming
TEXARKANA, Texas — A local psychologist and former nursing home owner pleaded guilty Wednesday to a misdemeanor fraud charge involving a Housing and Urban Development loan.
Rafael Otero, Ph.D., has agreed to pay restitution as part of his plea agreement. His son, Antonio Otero, is currently serving time in federal prison for felony equity skimming in a related case also filed in the Texarkana Division of the Eastern District of Texas.
"Dr. Otero, and his son Antonio Otero, exploited a HUD-insured mortgage program designed to provide affordable housing for those suffering from diseases like Alzheimer's," said Acting U.S. Attorney Nicholas Ganjei in a press statement Wednesday. "While they left the HUD-insured mortgage unpaid, the Oteros took hundreds of thousands of dollars. Because of their actions, the America taxpayers ultimately suffered a loss of over $3.6 million."
The crimes committed by the father and son involve the Magnolia Alzheimer's Assisted Living facility.
Rafael Otero, 68, appeared Wednesday for a plea hearing with Texarkana lawyer Jeff Harrelson before U.S. Magistrate Judge Caroline Craven.
Read more: https://www.texarkanagazette.com/news/texarkana/story/2021/feb/10/local-psychologist-pleads-guilty-hud-fraud-charge-son-previously-sentenced-equity-skimming/859640/
