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Louisiana Man Sentenced for $200,000 Social Security Disability Fraud

February 13, 2019

Office Affiliation: The Office of External Relations

From the U.S. Attorney's Office, Eastern District of Louisiana:

NEW ORLEANS – United States Attorney Peter G. Strasser announced that OTHO SCHILLING (“SCHILLING”), age 59, of Mt. Hermon, Louisiana, was sentenced today by U.S. District Court Judge Jay C. Zainey to three years of probation and ordered to pay restitution in the amount of $202,632.00 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to court records, SCHILLING, while he was the pastor of a church in Bush, LA beginning in 2005 up until 2016,  required the church to pay his personal expenses, such as his health and car insurance premiums, car payments, and personal land note in lieu of the church paying him a salary directly. During this period, SCHILLING was receiving Retirement, Survivors and Disability Insurance (“RSDI”) from the Social Security Administration in the amount of $1,728 a month.  SCHILLING concealed both his earnings and employment from the Social Security Administration. Accordingly, SCHILLING fraudulently received over $200,000 in RSDI benefits he was not entitled to due to his employment with the church.

U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General.  The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

From the U.S. Attorney's Office, Eastern District of Louisiana:

NEW ORLEANS – United States Attorney Peter G. Strasser announced that OTHO SCHILLING (“SCHILLING”), age 59, of Mt. Hermon, Louisiana, was sentenced today by U.S. District Court Judge Jay C. Zainey to three years of probation and ordered to pay restitution in the amount of $202,632.00 for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to court records, SCHILLING, while he was the pastor of a church in Bush, LA beginning in 2005 up until 2016,  required the church to pay his personal expenses, such as his health and car insurance premiums, car payments, and personal land note in lieu of the church paying him a salary directly. During this period, SCHILLING was receiving Retirement, Survivors and Disability Insurance (“RSDI”) from the Social Security Administration in the amount of $1,728 a month.  SCHILLING concealed both his earnings and employment from the Social Security Administration. Accordingly, SCHILLING fraudulently received over $200,000 in RSDI benefits he was not entitled to due to his employment with the church.

U.S. Attorney Peter G. Strasser praised the work of the Social Security Administration, Office of Inspector General.  The prosecution of this case is being handled by Assistant U. S. Attorney Brian M. Klebba, Supervisor of the Financial Crimes Unit.

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