Gardner Woman Pleads Guilty to Social Security Fraud

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 changes in their marital status, living arrangements and household income and resources.

In July 2014, Otero reported to SSA that she was married, but stated that she did not live with her husband. After that July 2014 report, Otero's husband became part of the household and Otero did not notify SSA as required. At all times during the charged period, Otero's husband's income exceeded the SSI limits. Had Otero accurately reported her living arrangements, her husband's income would have made her ineligible for SSI when they lived together.

The charge of receipt of stolen government money or property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of Social Security fraud - concealment provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and statutes which govern the determination of a sentence in a criminal case.

United States Attorney Leah B. Foley and Amy Connelly, Special Agent-in-Charge of the Social Security Administration, Office of the Inspector General, Office of Investigations, Boston Field Division made the announcement. The case is being prosecuted by Special Assistant U.S. Attorney James J. Nagelberg and the Worcester Branch Office.

On March 26, 2026, United States Attorney Leah B. Foley announced the creation of the Benefit & Voter Fraud Team, a district-wide initiative established in response to the rampant fraud being uncovered across Massachusetts. The Team is led by two senior federal prosecutors serving as Fraud Coordinators, whose mission it is to aggressively investigate and prosecute misuse of taxpayer-funded benefits in Massachusetts.

Members of the public are encouraged to report suspected benefit fraud in Massachusetts by calling 1-855-SCAM-MA-1 (855-722-6621).

On April 7, 2026, the Department of Justice announced the creation of the National Fraud Enforcement Division. The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department's work to combat fraud supports President Trump's Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs.