Ex-Pastor Otho Schilling Indicted for $200K Social Security Fraud

OTHO SCHILLING, a 58-year-old former church pastor from Mt. Hermon, Louisiana, was indicted today on federal charges for stealing over $200,000 in Social Security benefits he never should have collected. The charges, handed down by a federal grand jury, accuse SCHILLING of living off government funds while secretly working full-time in ministry and funneling church money to cover his personal debts.

Between 2005 and 2016, SCHILLING served as pastor at a church in Bush, LA. Instead of drawing a formal salary, he directed church funds to pay his health insurance, car payments, car insurance, and even a personal land note. These were not gifts or reimbursements — they were structured as regular compensation, effectively making him an employee of the church. But while he collected these benefits, SCHILLING failed to report his employment or income to the Social Security Administration.

During that same decade-plus stretch, SCHILLING collected $1,728 per month in Retirement, Survivors and Disability Insurance (RSDI) payments. Because RSDI is meant only for individuals not engaged in substantial gainful activity, his continued employment made every dollar he received a fraudulent taking. By concealing his role and earnings, SCHILLING bilked the system out of more than $200,000 in taxpayer-funded benefits.

The indictment, returned in federal court, charges SCHILLING with Theft of Government Funds under Title 18, U.S.C. § 641. If convicted, he faces up to ten (10) years in federal prison, followed by up to three (3) years of supervised release, a fine of $250,000, and a mandatory $100 special assessment. The charges are not convictions — but the evidence, according to prosecutors, paints a clear picture of deliberate deception.

U.S. Attorney Duane A. Evans, who announced the indictment, emphasized that the case remains prosecutorial until proven in court. “The indictment is merely a charge,” Evans stated. “The guilt of the defendant must be proven beyond a reasonable doubt.” Still, the Social Security Administration’s Office of Inspector General played a key role in uncovering the scheme, tracking inconsistencies in SCHILLING’s reported status versus his actual employment.

The case is being prosecuted by Fraud Unit Chief Assistant U.S. Attorney Brian M. Klebba. As federal investigators close in, SCHILLING now faces the collapse of a double life — preaching faith while allegedly stealing from the public trust. The court will determine his fate, but the indictment sends a message: even in the house of God, the feds are watching.