A former Social Security employee has admitted to conspiracy and aggravated identity theft, according to a statement from U.S. Attorney Nicholas J. Ganjei.
David Lam, 45, Pearland, was an operations supervisor and claims specialist for the Social Security Administration office in Houston.
As part of his plea, Lam admitted to stealing the personally identifying information of recently deceased men and then using that PII to facilitate fraudulent benefits applications.
Lam admitted to working with various coconspirators—typically, women with children—to file fraudulent survivor benefits applications listing the deceased men as the children’s fathers or stepfathers.
If true, this would have entitled the women to receive benefits while raising their children as widows. However, the women had no connection to the men listed on the applications, and the deceased men did not father the children.
To facilitate his scheme, Lam would utilise the deceased men’s names, dates of birth and death and Social Security numbers.
He would also instruct the coconspirators to split the stolen funds with him. The women would transfer funds via applications like Zelle, CashApp or Chime.
Lam agreed to take responsibility for causing $3,346,280 in loss to the SSA and has agreed to pay that amount in restitution.
U.S. District Judge Sim Lake will impose sentencing on September 12.
At that time, Lam faces up to five years in federal prison for conspiracy to defraud the United States, as well as a maximum fine of $250,000.
He will also face two years for aggravated identity theft, which must run consecutively to any sentence imposed.
