On February 26, 2025, U.S. Attorney Nicholas J. Ganjei announced that Lee Marvin Nichols, a 40-year-old Texas resident and former claims specialist with the Social Security Administration (SSA), has been sentenced to federal prison for theft of government property and failure to appear for sentencing. This information was reported by the Office of the Inspector General.
Nichols confessed to committing the theft on October 3, 2023. Originally, he was supposed to be sentenced on February 14, 2024, but he skipped the hearing and escaped to Mexico. After spending several months abroad, Nichols came back to the United States in September 2024 and finally admitted his guilt on December 2, 2024.
During the court proceedings, evidence emerged that Nichols knowingly utilized the identities of vulnerable people to commit fraud. A particularly heinous case concerned a guy who sought assistance after being diagnosed with a terminal disease. Nichols waited until the guy died before submitting a bogus application in his name and withdrew benefits with a debit card at drive-through ATMs. To avoid detection, Nichols disguised himself with masks and other coverings.
Nichols’ flight from justice caused a significant drain on government and court resources. Moreover, his decision to bring his luxury pickup truck to Mexico prevented it from being sold to contribute towards restitution payments.
U.S. Attorney Nicholas J. Ganjei condemned Nichols’ actions, stating, “The defendant not only stole from the American taxpayer, but he also abused the trust given him as a public servant. The Southern District of Texas will continue to safeguard the public fisc by rooting out fraudsters like Mr. Nichols.”
During the investigations, it was discovered that Nichols created fake profiles for two imaginary children and connected them to a man who had passed away and a disabled woman residing in Mexico. The motive behind this deceitful plot was to obtain survivor benefits. To carry out his scheme, Nichols arranged for the debit cards associated with these benefits to be delivered to an accomplice’s address, enabling him to make frequent withdrawals from ATMs. To avoid being recognized, he cleverly disguised himself by wearing hats, sunglasses, balaclavas, and other disguises while conducting these transactions.
Nichols not only defrauded the SSA but also unlawfully obtained economic stimulus payments for each fictitious child, amounting to $1,400 per child under the Coronavirus Aid, Relief, and Economic Security Act.
Nichols, in his plea agreement, has acknowledged his role in inflicting financial losses exceeding $75,000 upon the federal government. As a result, he has committed to making restitution payments of $82,516 to the SSA and $2,800 to the IRS.
U.S. District Judge Rolando Olvera handed down a sentence of 18 months in federal prison to Nichols for the theft charge. In addition, he received an extra six months for failing to appear for sentencing. These sentences will be served consecutively, resulting in a total of 24 months in prison. After serving his time, Nichols will be placed under three years of supervised release.
Nichols is currently in custody and will soon be transferred to the U.S. Bureau of Prisons to serve his sentence.
