A former Social Security employee has entered a guilty plea on counts of conspiracy and aggravated identity theft, as per an announcement from U.S. Attorney Nicholas J. Ganjei. David Lam, a 45-year-old from Pearland, and an operations supervisor as well as claims specialist with the Social Security Administration's office in Houston, now faces significant time behind bars following his admission to a multi-tiered fraud scheme that left the government short of over $3 million.
Having held a position of trust at the SSA, the details of David Lam's deception, obtained by the U.S. Attorney's Office, reveals a scheme preying on the identities of the deceased. Lam collaborated with various coconspirators, typically women with children, in filing fraudulent survivor benefits applications. These applications falsely listed the deceased men as the children's fathers or stepfathers, a move that would have, under legitimate conditions, qualified the women to draw benefits reserved for widows raising children.
As part of his plea, Lam admitted to his involvement in coordinating the fraudulent claims. By misusing personal information—including names, dates of birth and death, and Social Security numbers—he facilitated a scheme that compromised the integrity of the institution he was employed by and diverted resources from a fund intended to support vulnerable individuals. The women involved in the scheme sent Lam his share of the illegal proceeds using digital payment platforms such as Zelle, CashApp, and Chime.
Lam has consented to pay restitution in the amount of $3,346,280 to the SSA for the losses incurred by his actions, stated in the Justice Department's disclosure. He faces sentencing on Sept. 12 by U.S. District Judge Sim Lake, where the charges could land him up to five years for the conspiracy count along with a potential $250,000 fine, and an additional mandatory two-year sentence for aggravated identity theft, which must run consecutively with any other imposed sentence.
The investigation was carried out by the SSA-Office of Inspector General. Assistant U.S. Attorney Brad Gray is responsible for prosecuting the case.
