A US Marine accused of murdering a transgender Filipino woman after finding out she had been born a man, has had his $500,000 offer to plead guilty rejected by her family. Lance Corporal Joseph Scott Pemberton is accused of killing Jennifer Laude, whose body was discovered in a motel room in Olongapo City on October 11. The deal would have seen him admit to the killing in exchange for having the charge downgraded from murder to homicide, which comes with a maximum prison sentence of 20 years instead of 40. But the family angrily rejected Pemberton's plea bargain offer at the start of his trial today, which is proceeding as the marine has pleaded not guilty to murder. Scroll down for video . Lance Corporal Joseph Scott Pemberton arrives at court today for the first day of his trial. He is accused of murdering Filipino transgender woman Jennifer Laude in Olongapo City on October 11 . It is claimed US Marine Pemberton (left) murdered Ms Laude (right) after finding out she had been born a man . Flanked by officers Pemberton (centre) heads to court. His $500,000 plea bargain has been rejected . Laude's relatives said they had received a letter from the US Marine, who was 19 at the time of the killing, offering 21 million pesos ($468,000) in exchange for their approval to lower the charge . Prosecutor Emilie Fe de los Santos told reporters that Pemberton's lawyers had made an offer to settle the case, but no agreement was reached by today so the trial began as planned. De los Santos gave no details about the plea bargain offer. But Laude's relatives said they had received a letter from the US Marine, who was 19 at the time of the killing, offering 21 million pesos ($468,000) in exchange for their approval to lower the charge from murder to homicide. 'No amount of money could pay for the years I spent raising my child,' Ms Laude's mother Julita Cabillan told reporters. 'What they did to my child was gruesome. Just because we are poor doesn't mean we can't fight for justice.' Wearing a black suit, grew shirt and silver and green patterned tie, Pemberton was photographed being escorted by US soldiers to the hearing in Olongapo. Laude, also known as Jeffrey, was found naked with strangle marks on her neck having been drowned in the toilet bowl of a cheap motel room in the city's red light district in October last year, according to a police autopsy report. In rejecting the plea bargain offer made by Pemberton (right) the victim's mother Julita Cabillan said: 'No amount of money could pay for the years I spent raising my child' Pemberton, who had just finished training exercises between US and Philippine marines near Olongapo, checked into the motel with Ms Laude, aged 26, shortly after meeting her at a bar, prosecutors said. The prosecution's first witness, a bellboy, testified today that he saw Pemberton at the motel on the night Ms Laude was killed. However the proceedings were closed to the media, and scant details were only initially available via de los Santos. She said that, although Laude's family rejected the plea bargain offer, it could be revived and introduced 'anytime' during the trial. But lawyers for Ms Laude's family accused de los Santos of promoting the plea bargain, and separately filed a request with the justice department on Monday asking for her to be replaced. Ms Laude's death re-ignited long-simmering anti-US sentiment in the Philippines, a former American colony that still allows a significant American military presence via joint training exercises. Judge Roline Ginez-Jabalde is overseeing the trial, though both sides spent the past two weeks discussing the possible plea bargain. Pemberton is seen in a mobile phone picture taken inside the courtroom by the victim's sister Marilou Laude at his first hearing in December. She said she 'wanted to bang his head against the wall' Protesters chanting 'Justice for Laude' demonstrate outside the courtroom where Pemberton first appeared . Protesters jeer as the convoy of vehicles transporting Pemberton leaves the court after his first appearance . The Philippine Star reported that Julita Laude had been considering the $500,000 offer from Pemberton to downgrade the charges from murder to homicide. 'There have been talks on plea bargaining. It is possible for an accused to plead guilty to a lower offense, in this case from murder to homicide. 'The difference here lies in the number of years,' lawyer Virgie Suarez, one of two private lawyers for the Laude family, told the paper. She added: 'Indeed the Laude family wants nothing else but to see Pemberton being immediately convicted and his sentence be imposed. 'If this will happen it will do well if Pemberton will publicly apologize to the Laudes and to the Filipino people.' Lawyer Harry Roque, the other private counsel of the Laude family, earlier told members of media that their position is non-negotiable. Both lawyers have also expressed their belief that they have 'overwhelming' evidence and any judge handling the case will find the accused guilty. Pemberton, who was on shore leave after participating in the joint US-Philippine Balikatan military exercises, met Laude at the Ambyanz Nightlife Bar located along Magsaysay Avenue on October 11 and the two later checked in at the nearby Celzone Lodge. Pemberton (left) has pleaded not guilty to murder. Guards transport him to a military detention facility (right) Laude was later found dead by motel staff. Laude's sister, Marilou, had mixed emotions on seeing Pemberton for the first time at an earlier hearing in December. 'I wanted to ask him why he killed my brother,' said Marilou, whose transgender sibling was born Jeffrey eventually became Jennifer. 'I wanted to bang his head against the wall. I wanted to be angry, but I am also afraid.' Pemberton is temporarily detained at the Mutual Defense Board facility inside Camp Aguinaldo in Quezon City while remaining under US custody. The US embassy in December rejected a foreign ministry . request to hand Pemberton to Philippine authorities, citing the . Visiting Forces Agreement (VFA). Legal rules on the treatment of erring servicemen are laid . out in the 1998 pact signed by Manila and Washington to allow . US forces to hold military drills in the Philippines to test . the readiness of the allies. The prosecution had earlier said the case is a special one and should be heard, tried and decided within a year starting from December 15, 2014. Both the prosecution and defense had agreed to a two-day continuous trial, set every Monday and Tuesday, starting today and running until September 22 this year.
Marine Joseph Pemberton pictured arriving for hearing in Olongapo City . Lance Corporal is charged with murdering Jennifer Laude in same city . Post-mortem determined she was strangled and drowned in toilet bowl . Body was discovered in room at Celzone Lodge motel on October 11 . Pemberton met Laude at nightclub in city before two checked into room . Marine allegedly killed Laude after  finding out she was not born a woman . Plea bargain, which would have reduced charge to homicide, is now off .