HOUSTON, Texas (KXXV) — A former employee of the Social Security Administration (SSA) has pleaded guilty to conspiracy to defraud the United States and aggravated identity theft, according to U.S. Attorney Nicholas J. Ganjei.
David Lam, 45, of Pearland, previously served 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 personal identifying information (PII) of recently deceased men and using it to file fraudulent benefits claims.
According to court documents, Lam worked with multiple co-conspirators—typically women with children—by submitting fraudulent survivor benefit applications. These applications falsely named deceased men as the fathers or stepfathers of the children, which would make the women eligible to receive SSA benefits. Investigators determined the women had no relationship with the deceased men and that the claims were fabricated.
Lam used the deceased individuals’ names, birth and death dates, and Social Security numbers to facilitate the scheme. In return, the women would share a portion of the stolen funds with Lam through money transfer apps such as Zelle, CashApp, and Chime.
Lam admitted responsibility for causing $3,346,280 in losses to the SSA and has agreed to pay full restitution. He is scheduled to be sentenced by U.S. District Judge Sim Lake on Sept. 12.
Lam faces up to five years in federal prison and a $250,000 fine for the conspiracy charge, in addition to a mandatory consecutive two-year sentence for aggravated identity theft.
The case was investigated by the SSA Office of the Inspector General. Assistant U.S. Attorney Brad Gray is prosecuting.
