They say crime doesn’t pay, but for one former Social Security claims specialist, it did—until he got caught.
A Harlingen man, Lee Marvin Nichols, has been sentenced to two years in federal prison for stealing from the government and then trying to dodge his sentencing by fleeing to Mexico. But his attempt at a real-life escape story didn’t pan out the way he hoped.
Nichols, a former claims specialist with the Social Security Administration (SSA), was originally convicted of theft of government property. Instead of appearing for his sentencing in February 2024, he fled the country, only to return in September. Now, he’s facing the consequences—not only for the initial crime but also for his failed getaway.
How It Worked:
Nichols used his insider access to create fraudulent applications for survivor benefits. He exploited the identities of vulnerable individuals, including a terminally ill man who had recently passed away. After waiting for the man’s death, Nichols created a fraudulent benefits application and withdrew the funds using a debit card at ATMs while disguising himself with masks and coverings.
But that wasn’t all. He also fabricated profiles for two non-existent children, linking them to a deceased man and a disabled woman living in Mexico. By doing so, he fraudulently applied for survivor benefits, ensuring that the debit cards for these benefits were sent to an associate’s address. Once in possession of the cards, Nichols routinely withdrew cash while concealing his identity.
Who Was Targeted:
This fraud primarily targeted the U.S. government and exploited loopholes in the Social Security benefits system. Vulnerable individuals—those deceased or disabled—were unwittingly used in his scheme. Taxpayers also bore the brunt of his actions, as Nichols even went as far as fraudulently securing COVID-19 stimulus checks for his fake dependents.
Real-Life Consequences:
At his sentencing, the court heard just how meticulously Nichols carried out his fraud. His use of disguises, withdrawal patterns, and even his deliberate attempt to prevent asset seizure—by taking his luxury pickup truck to Mexico—showed clear intent. In total, Nichols stole over $75,000 from the government, for which he has now been ordered to pay more than $85,000 in restitution.
Why You Should Care:
This case highlights the significant risks of government fraud and identity theft. Taxpayer dollars were siphoned off through fraudulent claims, and valuable government resources were wasted tracking Nichols down after his escape. Furthermore, the abuse of trust by someone in a government position demonstrates how internal fraud can be just as damaging as external threats.
How to Protect Yourself:
- Always monitor your Social Security records for any suspicious activity.
- Report any fraudulent claims or suspicious SSA communications immediately.
- Be cautious when providing personal details, even to government agencies—verify identities first.
- Stay informed about recent fraud cases to recognize potential red flags.
- If you suspect fraudulent activity related to SSA benefits, contact the SSA Office of the Inspector General.
Quick Tips & Updates:
- Did you know? The IRS and SSA will never contact you via unsolicited texts or emails about benefits or payments. Always verify communication through official government websites.
- Pro Tip: Regularly check your Social Security statement online to ensure there are no unauthorized claims or benefits under your name.
Stay safe, stay informed.
Definitions of Keywords:
- Theft of Government Property: A federal crime involving the unauthorized taking or misuse of government funds or assets.
- Social Security Administration (SSA): The U.S. government agency that administers Social Security benefits, including retirement, disability, and survivor benefits.
- Survivor Benefits: Financial benefits paid to family members of a deceased individual who qualified for Social Security.
- Restitution: Court-ordered compensation that a convicted individual must pay to the victims of their crime.
- Fraudulent Application: A falsified document or claim submitted with the intent to deceive for financial gain.
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