BOSTON – A Gardner woman pleaded guilty today in federal court in Worcester to fraudulently receiving Social Security disability benefits.
Leidy E. Otero, 43, pleaded guilty to one count of receipt of stolen government money or property and one count of Social Security fraud – concealment. U.S. District Court Judge Margaret R. Guzman scheduled sentencing for Aug. 27, 2026. Otero was charged in April 2026.
In 2011, Otero applied for and began receiving Supplemental Security Income (SSI) disability benefits from the Social Security Administration (SSA) as the representative payee for two other individuals based on Otero’s limited income and resources. In assessing a married individual’s eligibility for SSI, the income and resources of the applicant’s spouse is considered if they live together. If an applicant is awarded SSI, they have a continuing obligation to notify SSA of any…
Investment fraud targets the human desire for financial growth by promising high returns with “low to no risk.”
- Ponzi Schemes: Named after Charles Ponzi, these schemes pay “returns” to earlier investors using the capital brought in by newer investors. There is no actual underlying business; the system collapses when new recruitment slows down.
- Pyramid Schemes: Similar to Ponzi schemes, but participants are usually required to sell a product or service. The primary “profit” comes from the recruitment fees of new members rather than actual product sales.
- Pump and Dump: Fraudsters spread false, positive rumors about a cheap stock (the “pump”) to drive up the price. Once the price peaks, they sell their shares (the “dump”), leaving other investors with worthless stock.