Texas – Lee Marvin Nichols, 40, a former claims specialist with the Social Security Administration (SSA), was sentenced to 24 months in federal prison for theft of government property and failure to appear for sentencing, as announced by U.S. Attorney Nicholas J. Ganjei.
Nichols admitted to his theft on October 3, 2023, but failed to attend his sentencing hearing on February 14, 2024. After fleeing to Mexico, Nichols returned to the U.S. in September 2024 and later acknowledged his guilt in December 2024.
Evidence presented during the proceedings revealed that Nichols exploited the identities of vulnerable individuals to defraud the government. In one particularly disturbing case, he fraudulently created an application for benefits in the name of a terminally ill man after his death, then used a debit card to withdraw the funds at drive-thru ATMs. To avoid detection, Nichols wore disguises during the transactions.
Investigations also uncovered that Nichols fabricated profiles for two fictitious children linked to a deceased man and a disabled woman in Mexico, enabling him to claim survivor benefits. Additionally, he illegally obtained $1,400 per fictitious child under the Coronavirus Aid, Relief, and Economic Security Act.
As part of his plea agreement, Nichols accepted responsibility for over $75,000 in financial losses to the federal government. He has been ordered to pay restitution of $82,516 to the SSA and $2,800 to the IRS.
U.S. District Judge Rolando Olvera sentenced Nichols to 18 months for the theft charge and an additional 6 months for fleeing sentencing. The sentences will run consecutively, totaling 24 months in prison. Following his time in prison, Nichols will be under three years of supervised release.
Nichols remains in custody and will be transferred to the U.S. Bureau of Prisons to serve his sentence.
