A 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, as announced by U.S. Attorney Nicholas J. Ganjei. Lee Marvin Nichols, a 40-year-old resident of Harlingen, Texas, pleaded guilty to the theft charge on October 3, 2023.
Nichols was initially scheduled for sentencing on February 14, 2024, but failed to appear and fled to Mexico. He returned to the United States in September 2024 and subsequently pleaded guilty to an additional charge on December 2, 2024.
U.S. District Judge Rolando Olvera ordered Nichols to serve a total of 24 months in federal prison—18 months for the underlying theft charge and an additional six months for his failure to appear. Following his sentence, he will be under supervised release for three years.
During the court hearing, evidence revealed that Nichols misused identities of vulnerable individuals, including creating fraudulent applications after their deaths. He withdrew benefits using debit cards at drive-thru ATMs while disguising himself with masks and other coverings. His actions also involved fleeing justice in a luxury pickup truck, preventing it 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 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 nonexistent children linked to a deceased man and a disabled woman in Mexico in order to create survivor benefits applications. He ensured that debit cards were sent to an associate's address and made regular ATM withdrawals while concealing his identity with various disguises.
Furthermore, Nichols facilitated $1,400 economic stimulus payments issued by the IRS under the Coronavirus Aid, Relief and Economic Security Act for each fictitious child.
As part of his plea agreement, Nichols accepted responsibility for over $75,000 in losses incurred by the federal government. He agreed to pay $82,516 in restitution to SSA and $2,800 in restitution to the IRS.
Nichols remains in custody awaiting transfer to a U.S. Bureau of Prisons facility yet to be determined.
The investigation was conducted by SSA-Office of Inspector General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation with prosecution handled by Assistant U.S. Attorneys Brad Gray, Andrew Swartz and Jose Esquivel.