Spencer, MA – A Massachusetts woman is facing serious federal charges after being accused of fraudulently collecting over $40,000 in Social Security benefits meant for a deceased person. According to federal authorities, the woman continued to receive and withdraw benefits for more than 15 years after the recipient had passed away.
The accused, 62-year-old Gina Llerena-Donohue, allegedly carried out the fraud by withholding information from the Social Security Administration (SSA) and the bank where the benefits were deposited.
The Allegations: How the Fraud Occurred
Federal investigators claim that Llerena-Donohue, who had power of attorney over the deceased individual, failed to notify the SSA or the bank about the person’s death in January 2006. Instead, she continued to access the funds through cash withdrawals while falsely maintaining that the power of attorney remained valid.
“This case is a clear example of Social Security fraud,” a federal prosecutor stated. “For more than 15 years, the defendant allegedly took advantage of a deceased person’s benefits, depriving taxpayers of public funds.”
Authorities also claim that Llerena-Donohue submitted four fraudulent affidavits to the bank, swearing that the power of attorney had not been terminated—despite the legal reality that such authority ceases upon death.
The Charges and Potential Penalty
Llerena-Donohue has been charged with one count of bank fraud, a serious federal offense. If convicted, she could face:
✔ Up to 30 years in federal prison
✔ Fines of up to $1 million
✔ Restitution payments to the Social Security Administration
✔ Supervised release upon completing her sentence
Her initial court appearance is set to take place in U.S. District Court in Worcester, Massachusetts in the coming weeks.
A Growing Problem: Social Security Fraud Cases on the Rise
This case highlights a widespread issue in the U.S.: fraudulent claims on Social Security benefits. According to the SSA Office of the Inspector General (OIG), millions of dollars in improper payments are made each year due to fraud, administrative errors, and failure to report key changes like death, marriage, or income adjustments.
In 2023, another case in Lynn, Massachusetts, saw a woman sentenced for stealing over $50,000 in Social Security benefits meant for her deceased mother. She had forged signatures on checks and used the money for personal expenses.
Similarly, in New Jersey, a woman was convicted for collecting her father’s Social Security, disability, and pension benefits for over 12 years—resulting in a total fraud amount of $272,000.
How the Government Detects Social Security Fraud
The Social Security Administration (SSA) works alongside the Office of the Inspector General (OIG) to identify and prosecute fraud cases like this one. They employ several methods to detect fraud, including:
- Death Data Matching: SSA cross-checks its database with death records from government agencies to identify unreported deaths.
- Public Reporting: Individuals can report suspected fraud through oig.ssa.gov or by calling the fraud hotline.
- Financial Audits: The SSA monitors financial discrepancies and irregular transactions linked to beneficiaries.
- Investigations and Prosecutions: The Department of Justice (DOJ) prosecutes fraud cases, ensuring violators are held accountable.
How to Avoid Committing Social Security Fraud
Anyone managing benefits on behalf of another individual—especially as a representative payee or power of attorney—must comply with strict legal obligations. To avoid committing fraud:
✔ Immediately report the death of a Social Security recipient to the SSA (SSA Reporting Guide)
✔ Do not withdraw Social Security benefits after a recipient’s death
✔ Return any excess payments received to avoid financial penalties
✔ Understand that power of attorney does NOT grant access to a deceased person’s benefits
✔ Contact the SSA if you suspect a fraudulent Social Security claim
What Should You Do if You Suspect Fraud?
The government encourages people to report suspected Social Security fraud to the Office of the Inspector General. If you suspect someone is fraudulently collecting benefits:
📌 Report online: oig.ssa.gov
📌 Call the Social Security Fraud Hotline: 1-800-269-0271
📌 Contact your local SSA office: Find your SSA office
What’s Next for the Spencer Woman?
As the case moves forward, Llerena-Donohue’s court proceedings will determine whether she faces the maximum penalty or is offered a plea deal. Legal experts suggest that if she cooperates with authorities and agrees to repay the stolen funds, she may receive a reduced sentence.
For now, this case serves as a strong warning about the consequences of Social Security fraud. The government continues to crack down on individuals who exploit the system for personal gain—emphasizing that even years of undetected fraud can eventually result in serious legal action.
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