Texarkana psychiatrist sentenced to year in federal prison for misuse of Housing and Urban Development Funds


A Texarkana psychiatrist and former owner of the Magnolia assisted living center in Texarkana, Texas, pleaded guilty earlier this year to a misdemeanor fraud charge in the Texarkana Division of the Eastern District of Texas.

Rafael Otero, 68, appeared for sentencing this week before U.S. Magistrate Judge Caroline Craven. Craven sentenced Otero to one year in federal prison and ordered that he self surrender in January 2022 to begin serving the term.

The fraud involved a 2009 HUD loan for $4,860,000 which entered default status after payments were not made. Rafael Otero’s son, Antonio Otero, was administrator of the facility and sentenced in 2020 to 46 months in federal prison following a guilty plea. He was ordered to pay $2 million in restitution.

Rafael Otero is ordered to pay $3,654,677.37 joint and several with his son. He must also pay a $25 special assessment.

Otero is represented by Texarkana attorney Jeff Harrelson. Assistant U.S. Attorney Jonathan Hornok is representing the government.

Previous articleTexarkana Awarded $500,000 in EPA Revolving Loan Fund Supplemental Funding
Next articleBryan Ray Roberson