Social Security Employee, Lee Marvin Nichols, Heads to Prison for Creating Fake Children’s Profiles to Steal Public Funds
BROWNSVILLE, TX (STL.News) A 40-year-old Harlingen resident, Lee Marvin Nichols, and former claims specialist with the Social Security Administration (SSA) has been ordered to federal prison for theft of government property and for failure to appear for sentencing, announced U.S. Attorney Nicholas J. Ganjei.
Lee Marvin Nichols pleaded guilty to the theft charge October 3, 2023. Lee Marvin Nichols was originally set for sentencing February 14, 2024, but failed to appear and fled to Mexico. Lee Marvin Nichols returned to the United States in September 2024 and later pleaded guilty to the subsequent charge December 2, 2024.
U.S. District Judge Rolando Olvera has now ordered Lee Marvin Nichols to serve 18 months in federal prison for the underlying theft charge as well as another six months for his failure to appear. The sentences will run consecutively for a total of 24 months in prison. Lee Marvin Nichols must also serve three years of supervised release following completion of his sentence.
At the hearing, the court heard evidence describing how Nichols intentionally misused the identities of vulnerable individuals—including a man who originally applied for benefits after being diagnosed with a terminal illness. Nichols waited until this man died before creating the fraudulent application and then withdrew the benefits using a debit card at drive-thru ATMs where he concealed his identity using masks and other coverings. The court also heard how Nichols’ flight from justice wasted government and court resources and how, by taking his luxury pickup truck to Mexico, Nichols prevented the 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 Ganjei. “The Southern District of Texas will continue to safeguard the public fisc by rooting out fraudsters like Mr. Nichols.”
Nichols originally admitted to creating fictitious profiles for two children that did not exist. He linked the profiles to a recently deceased man and disabled woman living in Mexico in an attempt to create a survivor benefits application.
Nichols also ensured that the debit cards for the children’s benefits were sent to the address of someone with whom he was associated. He would then use the debit cards to make regular withdrawals at ATMs. When making those withdrawals, he attempted to disguise himself by using hats pulled down over his face, sunglasses, balaclavas and other clothing to conceal his appearance.
In addition, the IRS issued economic stimulus payments of $1,400 to each fictitious child pursuant to the Coronavirus Aid, Relief and Economic Security Act.
As part of his plea, Nichols took responsibility for over $75,000 in loss to the federal government. He also agreed to pay $82,516 in restitution to the SSA and $2,800 in restitution to the IRS.
Nichols will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The SSA-Office of Inspection General, Treasury Inspector General for Tax Administration and IRS Criminal Investigation conducted the investigation. Assistant U.S. Attorneys Brad Gray, Andrew Swartz and Jose Esquivel prosecuted the case.
SOURCE: Office of Inspector General
