Alamdar Hamdani U.S. Attorney | U.S. Attorney for the Southern District of Texas
A former claims specialist with the Social Security Administration (SSA) has been sentenced to federal prison for theft of government property and failing to appear for sentencing. Lee Marvin Nichols, a 40-year-old resident of Harlingen, Texas, was ordered by U.S. District Judge Rolando Olvera to serve 18 months in prison for theft and an additional six months for not appearing at his original sentencing. The sentences will run consecutively, totaling 24 months. Nichols will also have three years of supervised release after completing his sentence.
Nichols pleaded guilty to the theft charge on October 3, 2023. He was initially scheduled for sentencing on February 14, 2024, but did not appear and fled to Mexico. He returned to the United States in September 2024 and later pleaded guilty to the subsequent charge on December 2, 2024.
During the hearing, evidence showed that Nichols misused identities of vulnerable individuals, including a terminally ill man who had applied for benefits. After the man's death, Nichols created a fraudulent application and withdrew benefits using a debit card at drive-thru ATMs while concealing his identity with masks and other coverings. His flight from justice resulted in wasted government resources and prevented his luxury pickup truck from being sold for restitution.
"The defendant not only stole from the American taxpayer, but he also abused the trust given him as a public servant," said U.S. Attorney Nicholas J. Ganjei. "The Southern District of Texas will continue to safeguard the public fisc by rooting out fraudsters like Mr. Nichols."
Nichols admitted to creating fictitious profiles for two non-existent children linked to a deceased man and a disabled woman living in Mexico in an attempt to create survivor benefits applications. He ensured that debit cards for these benefits were sent to an associate's address and used them regularly at ATMs while disguising himself.
Additionally, Nichols benefited from economic stimulus payments issued by the IRS under the Coronavirus Aid, Relief and Economic Security Act—$1,400 each for the fictitious children.
As part of his plea agreement, Nichols accepted responsibility for over $75,000 in losses to the federal government and agreed to pay $82,516 in restitution to SSA and $2,800 to IRS.
Nichols remains in custody awaiting transfer to a U.S. Bureau of Prisons facility.
The investigation was conducted by SSA-Office of Inspection General, Treasury Inspector General for Tax Administration, and IRS Criminal Investigation. Assistant U.S. Attorneys Brad Gray, Andrew Swartz, and Jose Esquivel prosecuted the case.
