Imagine working at the Social Security Administration, trusted with people’s most private information—and using that trust to steal millions. That’s exactly what happened in Houston. It’s a shocking story of how one employee pulled off a massive fraud, the clever way he was caught, and what’s happening to him now.
Social Security Employee Stole Millions
Let’s meet the main character in this story: David Lam, a 45-year-old from Pearland, Texas. For years, Lam worked at the Houston office of the Social Security Administration, first as a claims specialist, then as an operations supervisor. He had access to people’s most sensitive information: names, dates of birth, Social Security numbers, even death records.
But Lam had a secret. He wasn’t just helping people get the benefits they deserved. He was stealing the identities of recently deceased men.
How David Lam’s Scheme Worked
Lam would take the personal information of these deceased men and team up with co-conspirators, usually women with children. Together, they’d file fraudulent survivor benefits applications, claiming the deceased men were the fathers or stepfathers of the children.
If the claims were approved, the women would receive Social Security survivor benefits meant for families who’ve lost a parent. The only problem? These women and children had no real connection to the men listed. The whole thing was a lie.
Lam instructed the women to split the stolen money with him. They’d send him his cut using apps like Zelle, CashApp, and Chime. Over time, this scheme added up to more than $3.3 million in stolen benefits.
How did Lam get caught?
The Social Security Administration’s Office of the Inspector General, the agency’s own watchdog, started investigating suspicious claims. They noticed patterns: the same names, the same stories, and money being sent to the same person, David Lam.
When Investigators dug deeper, They found that Lam was using his insider access to create fake records and approve fraudulent claims. But every fraud leaves a trail, and Lam’s was no exception.
Guilty Plea and Sentencing
In June 2025, Lam pleaded guilty to conspiracy to defraud the United States and aggravated identity theft. He admitted to causing over $3.3 million in losses to the Social Security Administration. As part of his plea deal, he agreed to pay back every penny.
Lam is scheduled to be sentenced by U.S. District Judge Sim Lake on September 12, 2025. He faces up to five years in federal prison for conspiracy and a $250,000 fine. Plus, he’ll get a mandatory two-year sentence for aggravated identity theft, which must be served after any other prison time.
So, what’s the lesson here? Even trusted insiders can abuse their power, but they can’t hide forever. Now I’m waiting to see if anyone else goes down for this fraud because there’s no way this one man was the only insider at the social security office.
I guess Elon Musk’s Department of Government Efficiency was right about fraud in the social security system, except in this instance, the call is coming from inside the house.
