A former employee of the Social Security Administration (SSA), David Lam, has pleaded guilty to charges of conspiracy to defraud the United States and aggravated identity theft. Lam, 45, from Pearland, Texas, previously worked as an operations supervisor and claims specialist at the SSA office in Houston.
The Fraud Scheme
As part of his plea agreement, Lam admitted to stealing the personal identifying information (PII) of recently deceased individuals and using it to file fraudulent claims for SSA benefits. Lam, working with multiple co-conspirators, typically women with children, submitted false survivor benefit applications. These applications falsely named deceased men as the fathers or stepfathers of the children, allowing the women to qualify for benefits they weren’t entitled to.
Investigators found that the women involved had no actual relationship with the deceased men, and the claims were entirely fabricated. Lam used the stolen names, birth and death dates, and Social Security numbers to carry out the scam. In exchange, the women involved would share a portion of the stolen funds with Lam through money transfer apps like Zelle, CashApp, and Chime.
Financial Impact and Legal Consequences
Lam’s fraudulent actions caused a significant financial loss to the SSA, totaling $3,346,280. As part of his plea deal, Lam has agreed to pay full restitution to cover the losses. He is scheduled for sentencing on September 12 by U.S. District Judge Sim Lake.
For the conspiracy charge, Lam faces up to five years in federal prison and a fine of up to $250,000. Additionally, due to the aggravated identity theft charge, Lam faces a mandatory consecutive two-year prison sentence.
Investigation and Prosecution
The case was thoroughly investigated by the SSA Office of the Inspector General. Assistant U.S. Attorney Brad Gray is handling the prosecution of this case. Lam’s actions, as part of a larger fraudulent operation, highlight the growing concerns of identity theft and fraud involving government services.
David Lam’s guilty plea serves as a reminder of the severe consequences of fraud and identity theft, particularly when it involves public services like the SSA. As the legal process moves forward, it is clear that Lam’s actions have caused significant financial harm, and he will face the consequences in court.
