A former Social Security Administration (SSA) employee has pleaded guilty to conspiracy to defraud the United States and aggravated identity theft, according to US Attorney Nicholas J. Ganjei.
David Lam, 45, of Pearland, previously worked as an operations supervisor and claims specialist at the Social Security Administration (SSA) office in Houston.
As part of his plea agreement, Lam admitted to stealing personally identifiable information (PII) from recently deceased men and using it to file fraudulent benefits claims.
According to court documents, Lam collaborated with a number of co-conspirators, most of whom were women with children, to file fraudulent survivor benefit applications.
These applications falsely identified deceased men as the children’s fathers or stepfathers, making the women eligible for Social Security benefits. Investigators determined that the women had no relationship with the deceased men and that the allegations were false.
Lam facilitated the scheme by using the deceased’s names, birth and death dates, and Social Security numbers. In exchange, the women would send Lam a portion of the stolen funds via money transfer apps like Zelle, CashApp, and Chime.
Lam admitted to causing $3,346,280 in losses to the SSA and agreed to pay full restitution. On September 12, he is scheduled to be sentenced by United States District Judge Sim Lake.
Lam faces up to five years in federal prison and a $250,000 fine for the conspiracy charge, as well as a mandatory two-year sentence for aggravated identity theft.
The case was investigated by the SSA Office of the Inspector General. Brad Gray, Assistant United States Attorney, is prosecuting.
