SAN DIEGO –Josephine Guinauli Aquino of San Diego admitted in federal court today that she hid her father-in-law’s overseas death to illegally collect more than $175,000 in retirement benefits that should have stopped when he died.

In her plea agreement, Aquino, 64, admitted that at the time of her father-in-law’s death in 2019, she knew that he was a veteran receiving monthly retirement benefits from both the Defense Finance Accounting Service and the Social Security Administration. Aquino knew that these benefits would immediately cease when the government became aware of her father-in-law’s death, , but because he died in The Philippines, the U.S. government was not automatically informed. Instead, Aquino admitted that she concealed his death from both the government and the bank where her father-in-law’s benefits were deposited each month. As a result, the United States continued to deposit these funds each month through October 2025.

After his death in August 2019, Aquino admitted, she used her father-in-law’s checkbook to forge at least 150 checks drawn on his bank account. In addition, Aquino admitted that she received monthly pension checks from the Nestle Corporation that were mailed to her father-in-law’s last address in the United States, which Aquino fraudulently endorsed and deposited into his bank account, using his bank card.

Aquino admitted that by concealing the death of her father-in-law, she caused an additional loss to the U.S. Department of Treasury for three economic impact payments issued during the COVID-19 pandemic, which were intended for her father-in-law’s benefit but converted to Aquino’s use.

As a part of her plea agreement, Aquino has agreed to make full restitution to the Defense Finance Accounting Service, the Social Security Administration, the Treasury Department and the Nestle Corporation. Aquino was released pending her sentencing on February 13, 2026, before District Judge Janis L. Sammartino.

“By stealing benefits that did not belong to her, this defendant took money away from other veterans and elderly Americans in need,” said U.S. Attorney Adam Gordon. “This office is committed to prosecuting those who defraud these important government programs.”

“Ms. Aquino’s guilty plea is an acknowledgement of her six-year fraud scheme in which she benefited financially to the detriment of the American taxpayer by unlawfully obtaining Department of Defense and Social Security benefits,” said John E. Helsing, Acting Special Agent-in-Charge for the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office.  “DCIS, along with our law enforcement partners and the Department of Justice, will continue to aggressively investigate those who seek to enrich themselves through fraudulent schemes targeting the U.S. government.”

“Ms. Aquino’s deliberate decision to conceal her father-in-law’s death abroad and steal Social Security benefits for her own benefit represents a serious violation of the law,” said Christian Assaad, Acting Special Agent-in-Charge, San Francisco Field Division, Social Security Administration, Office of the Inspector General. “Safeguarding the integrity of Social Security programs is central to our mission, and we will continue to ensure that those who misuse these benefits are held accountable.” This case is being prosecuted by Special Assistant U.S. Attorney Jeffrey D. Hill.

DEFENDANT                                                            Case Number 25-CR-4282-JLS

Josephine Guinauli Aquino                Age: 64                                   San Diego, CA

SUMMARY OF CHARGES

Receipt, Concealment, and Retention of Stolen Public Money – Title 18, U.S.C., Section 641

Maximum penalty: Ten years in prison and a $357,623.00 fine

INVESTIGATING AGENCIES

Department of Defense – Office of Inspector General

Social Security Administration – Office of the Inspector General