Federal authorities have charged 22 defendants with defrauding the Social Security Administration by illegally receiving cash benefits, resulting in a $2.6 million loss to the government.

Most of the defendants are charged with illegally accepting Social Security benefits intended for relatives after the family members died, and for failing to alert the administration that the beneficiary had passed away. One defendant – an employee of the Social Security Administration – was also recently arrested for allegedly diverting benefits to herself. Also included is a Los Angeles County Sheriff’s Deputy and a San Fernando Valley man who is accused of illegally receiving more than $400,000.

“Government programs like Social Security provide important benefits to qualified individuals so they can have economic security,” said United States Attorney Eileen M. Decker. “We cannot tolerate abuse of the system that provides support to millions of honest Americans, many of whom worked their entire lives to receive Social Security benefits. This series of cases illustrates our commitment to root out abuse and fraud involving social security and to protect the integrity of an important program aimed at helping senior citizens and the most vulnerable in our society.”

All of the defendants are charged with theft of government property – which carries a statutory maximum sentence of five years in federal prison. Some of the defendants are charged with additional offenses, including aggravated identity theft and defrauding the Social Security Administration.

The Social Security Administra-tion employee – Daysi Salazar-Arias, 38 – was named in an eight-count indictment that alleges she diverted benefits to herself and made it appear that the money was going to legitimate beneficiaries, one of whom was deceased.

Vicki Lynn Gregory, a sergeant with the Los Angeles County Sheriff’s Department, is charged with seven felony counts for allegedly taking widow’s insurance benefits her mother was receiving after she died. According to the indictment, Gregory “intentionally concealed the death of her mother … in order to continue to receive and spend these widow’s insurance benefits.” Gregory allegedly received approximately $30,000.

In the case involving the largest alleged loss, Jose Aguinaco Ugalde, 68, is charged with 16 counts, including aggravated identity theft, an offense that carries a mandatory two-year prison sentence. According to the indictment, Ugalde stole retirement insurance benefits that continued to be sent to his father even though his father had died. Ugalde also allegedly stole spousal benefits that were intended for his ex-stepmother. The two identity theft charges in the indictment allege that Ugalde illegally used a debit card issued to his late father, as well as the signature of his ex-stepmother, to steal the Social Security benefits.

Anyone who suspects that a beneficiary or someone designated to handle Social Security payments is defrauding the program, call the fraud hotline at (800)269-0271, or visit www.ssa.gov.