Weekend April 22 2023
Hector Barreto, 61, who led the SBA during George W. Bush’s presidency, pleaded guilty to one count of conspiracy to commit wire fraud and one count of conspiracy to defraud the U.S. government. The latter charge relates to conspiring to have nonprofits file false tax returns.
In exchange for the plea, prosecutors have agreed to drop four other charges against the California resident.
Barreto was charged with misappropriating hundreds of thousands of dollars contributed to two nonprofit organizations he once led. Most of the money was donated by prominent physician Dr. George Rapier III, the founder, chairman and CEO of San Antonio-based WellMed Medical Management Inc., either personally or through his charitable entities.
During opening statements Tuesday, Assistant U.S. Attorney Joseph Blackwell said Barreto used the nonprofits — the Latino Coalition Foundation and the Hispanic Business Roundtable Institute — as his “piggy bank.”
The wire fraud charge carries a maximum sentence of 20 years, while the charge of conspiracy to defraud the government has a maximum penalty of five years imprisonment. Under sentencing guidelines, which are recommended but not required, Barreto could face 33 to 41 months in federal prison when he is sentenced by U.S. District Judge Jason Pulliam on Aug. 2. Prosecutors will not oppose a sentence at the low end of the guidelines.
Barreto remains free on bail until his sentencing
Professor Elam 
Leave a comment