California woman admits hiding father-in-law’s death to collect over $175,000 in retirement benefits

CALIFORNIA – The U.S. Department of Justice announced November 26 that a California woman admitted in federal court to hiding her father-in-law’s overseas death to illegally collect more than $175,000 in retirement benefits.

Josephine Guinauli Aquino, 64, of San Diego, admitted in her plea agreement that she knew her father-in-law, a veteran receiving monthly retirement benefits from the Defense Finance Accounting Service and Social Security Administration, had died in 2019.

Aquino knew the benefits would stop once the government learned of her father-in-law’s death, but because he died in the Philippines, the U.S. was not automatically notified.

She admitted she concealed his death from both the government and the bank receiving his monthly benefits.

As a result, the United States continued to deposit those funds monthly through October 2025.

Forged 150 checks

After his August 2019 death, Aquino admitted using her father-in-law’s checkbook to forge at least 150 checks.

Aquino also admitted fraudulently endorsing and depositing monthly Nestlé pension checks mailed to her father-in-law’s U.S. address, using his bank card.

She admitted that concealing her father-in-law’s death caused an additional loss to the U.S. Department of the Treasury for three Economic Impact Payments issued during the COVID-19 pandemic, which were intended for her father-in-law but converted to Aquino’s use.

Aquino took money away from veterans and the elderly

Under her plea agreement, Aquino will make full restitution to the Defense Finance Accounting Service, Social Security Administration, Treasury Department, and Nestlé.

Aquino was released pending her February 13, 2026, sentencing before District Judge Janis L. Sammartino.

U.S. attorney Adam Gordon by stealing benefits that did not belong to her, this defendant took money away from other veterans and elderly Americans in need.

“This office is committed to prosecuting those who defraud these important government programs,” Gordon said.