An Ex-Amtrak Worker from Riverside County faces prison for orchestrating a $1M unemployment fraud and $63K sickness benefits scam, exploiting pandemic relief programs during the national crisis. This is reported by the railway transport news portal Railway Supply.

Ex-Amtrak Worker Involved in Large-Scale Fraud

Ex-Amtrak Worker Jailed for $1M Pandemic Fraud
Amtrak California Surfliner train. Photo by John Schreiber.

Lizette Lathon, 48, admitted to federal charges after conspiring with her husband to steal nearly $1M in unemployment benefits and filing fake medical claims worth $63K while employed at Amtrak.

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Investigators revealed she operated multiple tax businesses, including Miracle Tax Service in Los Angeles and two Moreno Valley firms. Using these, the couple submitted 44 false claims, resulting in significant losses for state and federal agencies.

Ex-Amtrak Worker Exploited CARES Act Programs

The scheme ran from spring 2020 to March 2021, leveraging expanded unemployment eligibility under the CARES Act. Bank of America issued debit cards for fraudulent claims, which were mailed to addresses controlled by the couple.

They withdrew cash at ATMs and made numerous purchases. Prosecutors stated the fraud caused $998,630 in losses. Lizette also submitted falsified medical claims to the Railroad Retirement Board, securing $63,047 in sickness payments during her tenure.

Kenneth Lathon, 50, pleaded guilty to conspiracy, identity theft, and firearm charges. He possessed a .22-caliber rifle and a 12-gauge shotgun without serial numbers despite felony convictions for theft, fraud, and drug offenses.

Authorities sentenced Kenneth to 4½ years in prison and ordered restitution of nearly $1M. Officials stressed the couple exploited relief systems during a crisis, highlighting the persistent challenge of pandemic-related fraud.

Source: mynewsla.com

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