BROWNSVILLE, TX – Former Social Security Administration (SSA) claims specialist Lee Marvin Nichols pleaded guilty to theft of government property, causing a loss of over $75,000 to the federal government.
Nichols admitted to fabricating profiles for two nonexistent children. He connected these profiles to a deceased man and a disabled woman residing in Mexico to falsely apply for survivor benefits. Debit cards associated with these benefits were sent to an address linked to Nichols, who subsequently withdrew funds at ATMs while attempting to disguise his identity.
The IRS also issued economic stimulus payments amounting to $1,400 each to the two fabricated profiles.
As part of his guilty plea, Nichols agreed to pay $82,516 in restitution to the SSA and an additional $2,800 to the IRS. Sentencing is set for Dec. 27, and Nichols faces up to 10 years in federal prison along with a maximum fine of $250,000.
The case was investigated by the SSA-Office of Inspector General, Treasury Inspector General for Tax Administration, and IRS Criminal Investigation. Prosecution is being handled by Assistant U.S. Attorneys Brad Gray, Ben Sandel, Andrew Swartz, and Jose Esquivel.