In huge news for those hoping to see the Trump Administration take seriously its responsibility to defend Social Security from destruction at the hands of fraudsters, the Department of Justice announced that it had finally caught and was holding accountable a former Social Security Administration (SSA)) employee who stole over $75,000 from the SSA.
According to the DOJ, the fraudster, who will serve two years in prison and pay back all he stole with interest, used his position in the SSA to take advantage of the vulnerable and create fake Social Security accounts so that he could pilfer the program and steal on a grand scale.
Describing what the former SSA employee did to steal from the program in a February 26, 2025 press release, the DOJ said, “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.”
Continuing, it explained how he went on the run to Mexico in an attempt to evade law enforcement, saying, “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.”
Building on that, the DOJ then noted how he created fake profiles to pilfer Social Security, explaining, “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.”
Further explaining how he used the fake profiles to pilfer Social Security, the DOJ added, “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.”
Earlier in the press release, the DOJ described the history of Nichols’ prosecution, noting that he fled to Mexico in an attempt to evade the authorities, saying, “Lee Marvin Nichols pleaded guilty to the theft charge Oct. 3, 2023. He was originally set for sentencing Feb. 14, 2024, but failed to appear and fled to Mexico. He returned to the United States in September 2024 and later pleaded guilty to the subsequent charge Dec. 2, 2024.”
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Adding to that, it explained what jail time he will face for the years of fraud and running from law enforcement, saying, “U.S. District Judge Rolando Olvera has now ordered 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. He must also serve three years of supervised release following completion of his sentence.”
And, describing how much he took from the program and how much he will have to pay back in restitution, the DOJ provided, “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.”
Watch a DOGE volunteer comment on the scale of fraud in Social Security here: