A Houston Social Security insider who turned his access to government records into a $3.3 million fraud machine was sentenced Friday in federal court, after prosecutors said he quietly rerouted survivor benefits using the identities of recently deceased men. The U.S. Attorney’s Office for the Southern District of Texas announced the sentence in a post on X.
Social Security employee sentenced in multimillion-dollar fraud and identity theft scheme https://x.com/i/status/2019881895325040679
— U.S. Attorney SDTX (@usao_sdtx) Feb 6, 2026
What prosecutors say
According to a press release, the defendant is David Lam, 45, of Pearland, who was an operations supervisor and claims specialist at the SSA’s Houston office. Lam pleaded guilty in June to conspiracy to defraud the United States and aggravated identity theft and agreed to pay $3,346,280 in restitution, as detailed by the U.S. Attorney’s Office, Southern District of Texas.
How the scam worked
Investigators with the Social Security Administration’s Office of Inspector General say Lam used his position to pull personally identifying information, including names, dates of birth and death, and Social Security numbers, for recently deceased men. He then created bogus survivor profiles, which were used to apply for survivor benefits on behalf of unrelated women and children, according to the SSA Office of Inspector General. Co-conspirators allegedly kicked back shares of the fraudulently obtained benefits to Lam through payment apps such as Zelle, CashApp and Chime.
Sentence announced Friday
The U.S. Attorney’s Office posted the sentencing announcement on X on Friday, linking to the office’s materials on the case and publicly tying the sentence to Lam’s June plea and his agreement to pay restitution.
Penalties and legal context
Conspiracy to defraud the United States carries a maximum five year sentence under 18 U.S.C. § 371. Aggravated identity theft carries a mandatory two year sentence that must run consecutively under 18 U.S.C. § 1028A.
Local fallout
The case adds to a series of Southern District prosecutions targeting schemes that exploit government benefits. Lam’s earlier guilty plea in June previously drew attention in local coverage that highlighted his earlier guilty plea.
Investigators and next steps
The SSA Office of Inspector General, IRS Criminal Investigation and the Treasury Inspector General for Tax Administration all worked the case, officials said. The U.S. Attorney’s Office has asked anyone with information about fraud involving government benefits to contact the Southern District of Texas Public Affairs office.
