As a claims specialist for the U. S. Social Security Administration (SSA), Lee Marvin Nichols played a key role in delivering U.S. Social Security benefits and services. Authorized with specific access to the Social Security database, Nichols conducted interviews, verified details related to eligibility for various benefits, and made final decisions on benefit claims – a position of privilege that allowed him to also create fraudulent accounts for his own benefit.
Nichols intentionally used the identities of vulnerable individuals in order to carry out his scheme. One case involved a man who applied for benefits after being diagnosed with a terminal illness. Nichols waited until the man passed away before fraudulently creating an application in his name. But he didn’t wait until the family was done grieving before he withdrew benefits fraudulently using a debit card at drive-thru ATMs.
Nichols also admitted to creating fictitious profiles for two children who did not exist. He linked those profiles to a recently deceased man and disabled woman living in Mexico to create a survivor benefits application. The IRS also issued economic stimulus payments of $1,400 to each of these fictitious children pursuant to the Coronavirus Aid, Relief and Economic Security Act.
On March 2, 2025, Nichols was sentenced to two years in prison. As part of his plea, Nichols took responsibility for over $75,000 in losses to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS.
Great job by Social Security Administration Office of Inspection General in this case.
Today’s Fraud of The Day is based on article “Sentenced for Creating Fake Accounts and Fleeing Justice” published by Newsbreak on March 2, 2025.
On February 26, 2025, the Office of the Inspector General reported 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, as announced by U.S. Attorney Nicholas J. Ganjei.
Nichols admitted to the theft offense on October 3, 2023. He was initially scheduled for sentencing on February 14, 2024, but failed to attend the hearing and fled to Mexico. After remaining outside the country for several months, Nichols returned to the United States in September 2024 and subsequently acknowledged his guilt on December 2, 2024.
