Former nonprofit leader pleads guilty to fraud in San Antonio

SAN ANTONIO, Texas - A California man who led two charitable nonprofits has pled guilty to fraud in San Antonio.

61-year-old Hector Barreto pled guilty April 20 to conspiracy to commit wire fraud and conspiracy to defraud the United States, just four days into a three-week jury trial.

According to court documents, Barreto was one of two conspirators who operated the Latino Coalition Foundation and the Hispanic Business Roundtable Institute from Oct. 2012 to Sept. 2021. He also controlled bank accounts for both organizations.

The US Attorney's Office says that Barreto and co-conspirator Miguel Gutierrez solicited donations from at least two victims for the purpose of funding nonprofit programs. 

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While some funding was used for its intended purpose, Barreto and Gutierrez also diverted between $250,000 and $550,000 toward personal credit card expenses, says the US Attorney's Office. The payments were not reported and from 2017 to 2019, Barreto also co-conspired to falsify the IRS Form 990s for the foundation.

Barreto is scheduled to be sentenced on Aug. 2 and faces a maximum penalty of 20 years in prison on the wire fraud charge and five years in prison on the charge of defrauding the U.S.